- US stockpiling tightens global copper availability further
- Oil steadies near highs on Fed rate hopes
Base metals traded mixed on the London Metal Exchange (LME), with copper leading the positives as prices rose 1.46% to $11,617/t. Nickel and lead also inched higher, gaining 0.15% and 0.20% respectively, while zinc posted a marginal 0.08% rise to $3,093/t. Aluminium was the only metal to slip, easing 0.38% to $2,893/t.
LME warehouse inventories showed a mixed pattern as well. Zinc stocks saw the strongest build, rising 1.93% to 55,375 t. Nickel inventories were unchanged, while copper stocks dipped 0.17% to 162,550 t. Aluminium stocks fell 0.49%, and lead inventories recorded the steepest decline at 1.81%, indicating tighter availability in the segment.
Domestic market overview
In Indias non-ferrous markets, BigMint assessed copper armature scrap at INR 968,000/t ex-Delhi, up INR 10,000/t (1.2%) d-o-d. Aluminium Tense scrap prices increased by INR 2,000/t w-o-w, stood at INR 188,000/t ex-Delhi and INR 184,000/t ex-Chennai, up INR 1,000/t d-o-d.
Nalco targets mid-2026 start for Pottangi bauxite mine
Nalco plans to commence operations at its Pottangi bauxite mine in Odisha by June 2026 as part of its strategy to expand mining capacity and support the growth of its integrated aluminium business. With Dilip Buildcon emerging as the L-1 bidder for mine development and operations, the project will feed Nalco’s ongoing expansion at its Damanjodi alumina refinery, where a fifth stream is being added to increase capacity by 1 MTPA. The Odisha government has granted a 50-year mining lease for the 698-hectare deposit, ensuring long-term raw material security. Nalco’s CMD confirmed that alternate bauxite sourcing and a new 3-million-tonne conveyor system—set for commissioning by April-May 2026 will prevent any supply gaps until Pottangi becomes operational, strengthening the company’s position in the aluminium value chain.
Copper climbs to fresh record as China stimulus and US stockpiling tighten supply
Copper climbed to a fresh record of $11,771/t on Monday as China signaled stronger economic stimulus for 2026 and US buyers accelerated stockpiling ahead of expected tariffs, tightening global supply and driving premiums to unprecedented highs. Beijing’s commitment to a more proactive fiscal stance and looser monetary policy boosted expectations for demand from power-grid upgrades, data-center expansion and industrial growth, while a rebound in China’s exports further supported sentiment.
The metal—already up more than 30% this year-continues to face structural tightness due to mine disruptions and smelting capacity outpacing raw material availability. Additional pressure came from a surge in US-bound withdrawals, which analysts say could contribute to a 450,000-ton refined copper deficit in 2026, with prices needing to average above $12,000/t to attract new mining investments.
Oil hovers near two-week highs on Fed cut expectations and geopolitical risks
Oil prices held near two-week highs on Monday as markets bet on a likely U.S. Federal Reserve rate cut that could boost economic activity and energy demand, while geopolitical tensions continued to threaten Russian and Venezuelan supply. Traders are pricing in an 84% chance of a quarter-point Fed cut, though divisions within the central bank are drawing investor focus. Meanwhile, slow progress in Ukraine peace talks, potential shifts in Russian supply due to G7–EU discussions on a maritime services ban, and renewed U.S. pressure on Venezuela kept supply risks elevated. At the same time, shifting flows-such as stronger Chinese buying of Iranian oil-added further complexity to the global oil balance.
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