LME base metals prices show mixed trends d-o-d; aluminium slides amid bearish sentiment

• Copper nears $10,000/t amid Fed rate cut bets
• China’s manufacturing PMI contracts in Aug’25

Base metals prices on the London Metal Exchange (LME) saw mixed trends d-o-d, with lead increasing by 0.63% to $2,004/tonne (t). Meanwhile, inventories at LME-registered warehouses saw negative trends d-o-d, with lead recording the highest decline of 0.57%.

On 1 September, LME aluminium contracts slipped across cash, 3-month, and forward positions, while alumina fell more sharply, reflecting weaker sentiment and pressure across the aluminium value chain.

Domestic market overview

In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 800,000/t ex-Delhi, up by INR 4,000/t d-o-d. Aluminium Tense scrap prices remained flat d-o-d, with ex-Delhi at INR 196,000/t and ex-Chennai at INR 199,000/t.

Other market updates

China’s manufacturing shrinks for 5th consecutive month

China’s manufacturing purchasing managers’ index (PMI) stayed in contraction at 49.4 in August, marking the fifth consecutive monthly decline, as sluggish domestic demand, US tariff pressures, and a property downturn weighed on growth. Meanwhile, non-manufacturing PMI showed mild expansion at 50.3, offering limited support to the broader economy.

Oil prices rise on Russia-Ukraine conflict, supply risks

Oil prices rose, as the escalating Russia-Ukraine conflict heightened supply risks, with Ukrainian drone strikes disabling around 17% of Russia’s oil processing capacity. Both nations have intensified attacks on energy infrastructure, keeping risks elevated. Meanwhile, markets awaited the 7 September meeting from OPEC+ (Organization of the Petroleum Exporting Countries plus allied producers) for cues on output decisions, while China and India’s crude purchases from Russia added to geopolitical complexities.

LME copper nears $10,000/t on Fed rate cut bets, strong demand

LME copper prices hovered close to the key $10,000/t threshold on Monday, extending a four-week rally as a softer US dollar and resilient Chinese demand supported the market. Prices rose by up to 0.3% intraday to $9,928/t, ending August higher by 3%, while COMEX futures steadied at $10,137/t. The dollar’s weakness, driven by expectations of a US rate cut, boosted commodity appeal for overseas buyers, while China’s apparent copper consumption rose around 10% in the first half of 2025, helping sustain demand despite signs of cooling at the margins.