- US manufacturing activity remains in contraction
- Global copper demand seen rising by 2040
Base metals prices on the London Metal Exchange (LME) moved mixed in the latest session, reflecting divergent price trends across the complex. Aluminium prices eased 1.29% to $3,089/t, while zinc declined 2.57% to $3,168/t and lead slipped 0.79% to $2,060/t. Nickel saw a sharp correction, plunging 30.36% to $12,900/t, weighing on overall sentiment. In contrast, copper bucked the trend, surging 35.18% to $17,895/t on strong buying interest.
LME warehouse inventories showed varied movements, indicating uneven supply conditions. Aluminium stocks fell 0.50% to 501,750 t, while zinc inventories edged down 0.26% to 105,500 t and lead stocks declined 1.25% to 230,425 t. Nickel inventories dropped sharply by 43.95% to 143,225 t, pointing to a significant drawdown in available stocks. Meanwhile, copper inventories rose 88.69% to 275,634 t, signalling increased inflows and relatively comfortable near-term supply on the exchange.
Domestic market overview
In India’s non-ferrous market, copper armature scrap prices were assessed stable at INR 1,110,000/t ex-Delhi on a day-on-day basis. Meanwhile, aluminium Tense scrap prices also remained steady at INR 205,000/t ex-Delhi, while prices in Chennai rose by INR 7,000/t to INR 193,000/t, reflecting firmer regional demand.
Other market updates
Global copper demand set to rise sharply by 2040
Global copper demand is projected to grow by nearly 50% by 2040, driven primarily by rapid expansion in artificial intelligence, data centres, electrification, and advanced technologies. Rising power consumption, grid upgrades, and increased use of copper-intensive equipment are expected to significantly lift demand, while supply growth may struggle to keep pace unless investments in mining capacity and recycling accelerate.
Global nickel prices hit 15-month high on strong market sentiment
Nickel prices on trading platforms climbed to around $18,045/t on 6 January, up about 7% from the previous day and breaking above $18,000 for the first time in 15 months, driven by robust market sentiment and broader metals price strength. Prices have risen sharply from mid-December levels, with both London and Shanghai exchange prices gaining, supported by concerns over supply-side changes and tightness in related base metals markets.
US manufacturing activity falls to lowest 2025 level
US manufacturing activity dropped to its lowest point of 2025 in December, with the PMI falling to 47.9%, signalling continued contraction as weak demand and lingering tariff uncertainty weigh on the sector. Although some demand indicators such as new orders and backlog showed minor improvements, most segments remained in contraction and production slipped slightly, keeping overall business conditions subdued. Tariff-related export weakness and cautious order books contributed to further caution among manufacturers.
Oil steadies as stocks ease on geopolitics and data
Oil prices steadied and global stocks eased as investors balanced geopolitical tensions and mixed US economic data. On January 8, oil recovered modestly with US crude around $56.29 a barrel and Brent near $60.29, while Asian share markets slipped following a strong start to the year. Traders are closely watching upcoming US jobs data and the Federal Reserve’s interest-rate outlook, with geopolitical developments — including US moves on Venezuelan oil and China-Japan trade probes — also weighing on sentiment.
Leave a Reply