- Copper leads losses after recent sharp rally
- China Hongqiao advances onshore aluminium strategy
Base metals prices on the London Metal Exchange (LME) declined on 29 December, with broad-based losses recorded across aluminium, nickel, copper, zinc, and lead. Aluminium prices fell 1.44% to $2,952/t, reflecting subdued sentiment, while nickel eased 0.85% to $15,814/t. Copper saw a sharp correction, sliding 4.75% to $12,222/t, as the recent rally faced profit booking. Zinc prices dropped 1.64% to $3,089/t, and lead edged lower by 0.47% to $2,006/t.
LME warehouse inventories moved marginally lower across most metals. Aluminium stocks declined by 0.35% to 519,250 t, while nickel inventories slipped 0.20% to 255,186 t. Copper stocks fell 1.56% to 154,575 t, indicating steady drawdowns. Zinc inventories decreased 0.30% to 106,550 t, and lead stocks dropped 1.86% to 244,275 t.
Domestic market overview
In India’s non-ferrous markets, BigMint assessed copper armature scrap at INR 1,170,000/t ex-Delhi, up by INR 70,000/t d-o-d. Meanwhile, aluminium Tense scrap prices icreased by INR 3,000/t d-o-d to INR 204,000/t ex-Delhi and by INR 500/t d-o-d to INR 191,000/t ex-Chennai, respectively.
Other market updates
Tian Yuan backs China Hongqiao’s aluminium M&A move
Tian Yuan Law Firm advised on a major merger between two subsidiaries of Shandong Weiqiao Pioneering Group, the largest such deal by a privately owned firm in China’s A-share market. The transaction supports China Hongqiao’s strategy to shift its aluminium assets onshore, with Shenzhen-listed Hontron Aluminium Industry acquiring 100% of Hongtuo Industrial. The stock-for-stock deal has cleared the SZSE’s M&A review committee and is pending final regulatory approval, and is expected to significantly enhance Hontron’s scale and global market position.
Oil prices steady amid geopolitical risks and inventory concerns
Oil prices held onto recent gains as markets balanced escalating geopolitical tensions against mounting supply concerns. Brent hovered near $62/bbl after a slight jump, while WTI traded above $58/bbl, supported by supply disruptions in Venezuela due to a partial US blockade and heightened risks linked to Russia, Ukraine, and Iran. However, sentiment remained capped by oversupply worries, with OPEC+ ramping up output and global floating storage rising 15% last week, nearing multi-year highs. In the US, crude inventories at Cushing recorded the largest weekly build since late October, alongside increases in gasoline and distillate stocks, reinforcing concerns that global production may continue to outpace demand despite ongoing geopolitical volatility.
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