- Copper slips despite continued inventory drawdowns
- Profit-booking drags metal stocks lower in June
Base metals on the London Metal Exchange (LME) traded sharply lower on 23 June 2026, with aluminium leading losses among major non-ferrous metals. Aluminium fell 3.89% d-o-d to $3,233/t, followed by nickel, which declined 3.28% to $17,172/t. Zinc slipped 3.24% to $3,492/t, while copper dropped 2.04% to $13,371/t. Lead also edged lower by 1.53% to $1,934/t. The broad-based decline reflected easing geopolitical concerns and softer sentiment across commodity markets as crude oil prices extended losses.
On the inventory side, stocks continued to trend lower across all major base metals. Copper inventories recorded the largest decline, falling 0.83% d-o-d to 349,225 t, followed by aluminium inventories, which dropped 0.48% to 313,800 t. Zinc stocks decreased 0.26% to 123,450 t, while lead and nickel inventories edged down by 0.03% and 0.01% to 301,850 t and 276,192 t, respectively. Continued drawdowns in copper inventories suggest underlying physical demand remains supportive despite recent weakness in prices.
The sell-off was driven by easing geopolitical tensions in the Middle East, as improving shipping activity through the Strait of Hormuz and progress in US-Iran peace talks reduced fears of prolonged energy supply disruptions. Crude oil prices also weakened sharply, dampening inflation concerns and reducing support for commodity markets.
Domestic market overview
India’s non-ferrous scrap market remained mixed on 23 June amid cautious buying activity and weakness in global benchmark prices. Aluminium tense scrap (loose), ex-Chennai, increased by INR 500/t, or 0.17% d-o-d, to INR 293,500/t, while ex-Delhi prices remained unchanged at INR 288,000/t.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, declined by INR 15,000/t, or 1.21% d-o-d, to INR 1,220,000/t, tracking the correction in LME copper prices and subdued buying interest from downstream consumers.
Oil prices extend losses as Hormuz transit improves
Global crude oil prices continued to weaken on 24 June 2026, with Brent crude falling 1.51% d-o-d to $76.47/bbl and WTI crude declining 1.40% to $72.66/bbl, as improving geopolitical conditions eased concerns over supply disruptions in the Middle East. Natural gas prices also fell 3.75% to $3.13/MMBtu, reflecting softer energy market sentiment.
Market participants remained focused on improving vessel movement through the Strait of Hormuz, a critical global oil shipping route. Shipping activity has increased in recent days, with stranded supertankers gradually resuming transit through the strait following the US-Iran ceasefire agreement.
Oil prices were further pressured by reports that the United States granted Iran a 60-day sanctions waiver following initial peace talks, allowing the country to resume oil exports. While optimism surrounding diplomatic progress and recovering oil flows has improved market sentiment, uncertainty remains over the durability of the agreement and the pace at which regional producers can fully restore exports.
Other updates
Indian metal stocks correct amid profit-booking pressure
Indian metal stocks remained under pressure in June, with the Nifty Metal index declining over 4% m-o-m despite a 2.5% gain in the benchmark Nifty 50. The weakness was largely attributed to profit-booking following the sector’s strong rally of more than 20% since the beginning of 2026.
Vedanta emerged as the biggest laggard, falling nearly 20% in June, while NALCO, Hindalco, and SAIL declined 12-15%. On 24 June, Vedanta dropped around 7% following a large block deal, while NALCO, Hindustan Zinc, Hindalco, Jindal Steel, and NMDC fell 3-5%. Market analysts believe the broader uptrend in metal stocks remains intact, with the Nifty Metal index expected to consolidate within the 12,500-13,500 range before its next directional move.
Copper falls as stronger dollar and hawkish Fed outlook
Copper prices remained under pressure on 23 June, with LME copper declining 2.04% d-o-d to $13,371/t after reaching multi-month highs earlier this month. The correction was driven by a stronger US dollar, which rose to around 101.5, and cautious market sentiment following hawkish remarks from Federal Reserve officials that reinforced expectations of higher interest rates for longer.
Elevated borrowing costs and a firmer dollar reduced the appeal of industrial metals for global investors, triggering profit-booking across commodity markets. Despite the decline, copper inventories on the LME continued to tighten, falling 0.83% d-o-d to 349,225 t, highlighting underlying physical demand. Market participants remain focused on the balance between supportive supply fundamentals and macroeconomic headwinds, including monetary policy uncertainty and slowing global manufacturing activity.
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