- Grasberg mine shutdown fuels global copper shortage
- Aluminium growth to anchor Vedanta’s FY’28 strategy
Base metals prices on the London Metal Exchange (LME) saw positive trends d-o-d, with copper increasing by 2.14% to $10,716/tonne (t). Meanwhile, inventories at LME-registered warehouses registered divergent movements d-o-d, with lead recording the highest gain of 1.60%.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed copper armature scrap at INR 862,000/t ex-Delhi, up by INR 5,500/t d-o-d. Aluminium Tense scrap prices were assessed at INR 192,000/t ex-Delhi, and at INR 192,000/t ex-Chennai, both stable d-o-d.
Oil prices rise after OPEC+ opts for modest output hike
Oil prices gained about 1.5% after OPEC+ announced a smaller-than-expected November production increase of 137,000 barrels per day, matching October’s hike. The move eased supply concerns, though analysts believe weak fourth-quarter demand and upcoming refinery maintenance will limit further gains. Tensions over sanctions on Russia and Iran, along with Ukraine’s continued attacks on Russian refineries, added to market volatility, but expectations of an oversupplied market continue to cap bullish momentum.
Vedanta to invest INR 13,226 cr to boost aluminium capacity
Vedanta Ltd plans to invest INR 13,226 crore to expand its aluminium capacity from 2.4 MTPA to 3.1 MTPA by FY’28, positioning aluminium at the core of its growth strategy. The company aims to reach 2.75 MTPA by FY’26 and strengthen its leadership with over 50% share in India’s aluminium market. Backed by cost optimisation and full captive integration across alumina and coal, Vedanta has reduced production costs by 24% over 11 quarters. Rising domestic demand, driven by initiatives like Make in India and Smart Cities, is expected to further support the company’s expansion momentum.
Copper hits record high following mine shutdown
Copper prices surged to record highs after a mud-flow accident at Indonesia’s Grasberg mine forced a production halt, with operations unlikely to resume before 2027. The shutdown prompted Freeport-McMoRan to cut its 2026 sales guidance by 35%, intensifying supply concerns as LME inventories fell to their lowest since August. Chile’s output also dropped nearly 10% year-on-year after an earthquake at Codelco’s El Teniente mine. While the global copper market still shows a modest surplus, analysts now expect tightening supply ahead — with major banks projecting prices could climb to $12,000–14,000 per tonne next year amid a projected 400-kiloton supply deficit.
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