LME base metals ease d-o-d amid changing global metal trends

• LME metals ease as domestic scrap demand strengthens
• Nickel alliances and copper strength reshape non-ferrous outlook

Base metals on the London Metal Exchange (LME) traded mostly lower day-on-day as of the close of trade on 23 February, pressured by cautious sentiment and mild profit-taking. Aluminium slipped 0.42% to $3,090/t, copper fell 0.74% to $12,869/t, zinc declined 0.83% to $3,355/t, and lead eased 0.71% to $1,951/t, while nickel dropped 0.39% to $17,283/t.

Warehouse inventory movements were largely lower. Aluminium stocks decreased 0.42% to 473,550 t, nickel inventories remained unchanged at 287,706 t, and zinc stocks edged down 0.02% to 101,550 t. Meanwhile, copper inventories rose 3.84% to 241,825 t, while lead stocks slipped 0.28% to 286,325 t.

Domestic market overview

Domestic non-ferrous scrap prices in India showed firm undertones across key markets, signalling improved buying momentum. Aluminium tense scrap (loose), ex-Delhi, advanced 1.4% to INR 218,000/t, while Aluminium tense scrap (loose), ex-Chennai, climbed by INR 4,000/t or 1.8% to INR 225,000/t.

Similarly, Copper armature scrap (Cu 99%), ex-Delhi, increased by INR 10,000 or 0.9% to INR 1,130,000/t from INR 1,120,000/t, reflecting strengthening demand and supportive copper market sentiment.

Other market updates

US-Indonesia nickel deal reshapes critical minerals dynamics

The U.S. and Indonesia have agreed on a strategic framework that could alter global nickel supply chains, challenging existing market structures and investment flows. Indonesia now accounts for more than 60% of global nickel mine supply, and this evolving cooperation with the U.S. may influence pricing and availability of nickel — a key non-ferrous metal used in EV batteries and stainless steel — amid broader shifts in critical mineral markets.

Copper driving major miners’ earnings

Major mining companies BHP Group and Rio Tinto are seeing copper increasingly drive profitability, with copper now contributing over 50% of BHP’s operating earnings, overtaking iron ore, and Rio’s copper contribution doubling as earnings from iron ore fell. The sustained rally in copper prices — up around 59% from lows in April last year — underscores strong demand fundamentals across the industrial metals complex.