- Return of Chinese investors after holidays fuels copper rally
- RBI supports rupee stability through dollar intervention
Base metals prices on the London Metal Exchange (LME) saw positive trends d-o-d, with copper increasing by 1.86% to $10,868/tonne (t). Meanwhile, inventories at LME-registered warehouses registered positive movements d-o-d, with nickel recording the highest gain of 1.83%.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed copper armature scrap at INR 897,000/t ex-Delhi, up by INR 2,000/t d-o-d. Aluminium Tense scrap prices were assessed at INR 192,000/t ex-Delhi, up by INR 1,000/t and at INR 194,000/t ex-Chennai, up by INR 2,000/t d-o-d.
Other updates
Copper surges to $11,000 on supply fears, investor momentum
Copper prices soared to $11,000/t on Thursday — the highest level in 16 months — as investors bet on tightening global supplies following major mining disruptions, including Freeport’s force majeure at Indonesia’s Grasberg mine. The benchmark three-month contract on the London Metal Exchange jumped 3.1%, nearing its all-time high of $11,105 from May 2024, before settling at $10,887. The rally gained further traction as Chinese investors returned to the market after a week-long holiday, joining Western speculative buying. LME copper inventories dropped to 139,475 tonnes, their lowest since July, reinforcing supply concerns. Analysts warned that faster-than-expected mine recoveries could trigger corrections, but overall sentiment remains bullish.
RBI intervenes to steady rupee amid market volatility
The Indian rupee held firm around 85.70 against the US dollar on Friday, avoiding a new record low after recent turbulence driven by surging gold and silver prices, trade frictions with the US, and tighter global conditions. Gold rose above $3,968 per ounce and silver hovered near $49.25, adding pressure on the currency. The Reserve Bank of India intervened through strategic dollar operations to curb volatility, helping stabilize the rupee after it briefly approached last week’s all-time low of 88.80. Despite persistent external headwinds, the RBI’s timely actions-maintained exchange rate stability and prevented further depreciation.
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