- Nickel leads rally with sharp price surge
- RBI intervention strengthens INR below 90 mark
Base metals prices on the London Metal Exchange (LME) strengthened, posting broad-based gains on 7 January on improved market sentiment. Nickel led the rally, surging 8.95% to $18,524/t, while aluminium rose 1.41% to $3,129/t. Copper prices advanced 1.90% to $13,238/t, supported by steady buying interest, while zinc gained 1.75% to $3,251/t and lead climbed 2.59% to $2,076/t.
LME warehouse inventory trends were mixed, reflecting divergent supply conditions. Aluminium stocks fell 0.49% to 504,250 t, while zinc inventories edged down 0.07% to 105,775 t and lead stocks declined 1.50% to 233,350 t, signalling tighter availability. In contrast, copper inventories rose 2.47% to 146,075 t, and nickel stocks inched up 0.08% to 255,546 t, indicating relatively balanced supply on the exchange.
Domestic market overview
In India’s non-ferrous markets, BigMint assessed copper armature scrap stable at INR 1,110,000/t ex-Delhi, d-o-d. Meanwhile, aluminium Tense scrap prices increased by INR 1,000/t to INR 205,000/t ex-Delhi and remained stable at INR 193,000/t ex-Chennai, respectively.
Other market updates
RBI steps in to stop rupee slide
The INR rebounded sharply on Wednesday after the Reserve Bank of India (RBI) carried out heavy intervention to support the currency, traders said, pushing it back below the 90/$ after an early dip. The rupee strengthened to 89.93/$, up 0.26%, after slipping to 90.23/$ at the open, with traders noting the RBI followed its familiar strategy of disrupting one-way moves amid rising long-dollar positions, persistent foreign equity outflows, and ongoing uncertainty over a US-India trade deal.
Aluminium rebounds on optimism, supply constraints
Aluminium prices jumped 2.74% to INR 314.8 on improved investor sentiment amid early signs of economic stabilisation in China and Beijing’s renewed push to curb overcapacity in metal production. Expectations that Chinese smelters will restrain output growth in 2026, alongside a 9.2% y-o-y drop in aluminium exports in November, offered support, while global supply disruptions from high energy costs, operational bottlenecks, and geopolitical risks further tightened the outlook. Mixed inventory signals capped gains, with SHFE stocks trending slightly higher even as Japanese port inventories declined.
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