- Adani, Hindalco eye Peru copper assets for supply chain security
- US services PMI slips in Nov’25, signalling softer expansion
Base metals traded mixed on the London Metal Exchange (LME) on 4 December, with zinc leading the gains as prices rose 0.83% d-o-d to $3,091/t. Meanwhile, LME copper edged down by 0.33% to $11,450/t amid a moderate build-up in inventories. Aluminium remained stable, inching up 0.24% to $2,904/t, and nickel posted a marginal 0.16% increase to $14,897/t.
LME warehouse stocks showed varied movements, with copper inventories up 0.42% to 162,825 t, marking the highest increase in absolute volumes among major metals, while aluminium stocks fell 0.47% and lead inventories declined by 2.01%. Zinc inventories saw a notable 3.57% rise, reflecting stronger inflows into LME-registered depots.
Domestic market overview
In India’s non-ferrous markets, BigMint assessed copper armature scrap at INR 960,000/t ex-Delhi, up INR 15,000/t (1.6%) d-o-d. Aluminium Tense scrap prices remained unchanged, holding steady at INR 188,000/t ex-Delhi and INR 184,000/t ex-Chennai, unchanged d-o-d.
Other market updates
Adani, Hindalco eye Peru copper assets to boost Indian supply
Adani and Hindalco are exploring investments in Peru’s copper sector, seeking joint ventures or stakes in existing mines as India looks to strengthen its future copper supply chains. Peru, a top global producer, is welcoming new investment while advancing free trade talks with India that could secure fixed copper concentrate volumes. With domestic demand set to rise sharply and India expected to rely heavily on overseas concentrate by 2047, both companies have begun early-stage discussions and site evaluations to tap long-term opportunities.
RBI cuts rates, raises growth outlook despite weak rupee
The RBI unanimously reduced its key repo rate to 5.5% as Governor Sanjay Malhotra outlined measures to support growth while downplaying concerns over the rupee’s recent slump. With inflation easing sharply — CPI now projected at 2% for FY’26 — the central bank sees balanced risks and expects stronger momentum ahead. GDP forecasts were raised to 7.3% from 6.8% previously for the current fiscal year, supported by last quarter’s robust 8.2% expansion. Alongside rate adjustments to the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF), the RBI will conduct forex swaps and INR 1 lakh crore in bond purchases through open market operations (OMOs) to ensure liquidity. Malhotra said India is expected to end 2025 with solid growth and low inflation, maintaining a neutral stance as the economy enters the new year with renewed confidence.
US services PMI eases as sector shows slower expansion
On 3 December 2025, November’s US Services PMI came in at 54.1, below expectations of 55.0, pointing to a softer pace of growth in the sector. While the reading remains above the neutral 50 mark — indicating continued expansion — it reflects a slowdown from the previous month’s 54.8. The weaker-than-expected figure suggests moderating momentum across key service industries and is generally viewed as slightly bearish for the US dollar. Despite the dip, the sector continues to expand, though emerging headwinds raise questions about whether this slowdown is temporary or an early sign of a broader trend.
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