- India services sector growth has slowed down
- Energy crisis accelerated global EV metal demand
LME base metals traded higher on 30 July, with four of the five major contracts ending the session in positive territory. Copper recorded the strongest gain, rising 1.63% d-o-d to $13,803/t, followed by zinc, up 1.46% to $3,622/t, nickel, which advanced 0.78% to $17,270/t, and aluminium, edging higher by 0.50% to $3,196/t. Lead was the lone decliner, easing 0.21% to $1,896/t.
LME inventories recorded mixed trends on the day. Copper stocks registered the steepest decline, falling 2.41% d-o-d to 262,300 t, followed by zinc, down 0.68% to 101,800 t, aluminium, which slipped 0.56% to 267,800 t, and lead, easing 0.12% to 447,200 t, while nickel inventories remained unchanged at 267,522 t.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 30 July, with aluminium scrap prices remaining stable while copper scrap values strengthened in line with firmer international prices. Aluminium tense scrap (loose) remained unchanged at INR 248,000/t ex-Delhi and INR 245,000/t ex-Chennai.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, increased by INR 14,000/t (1.1%) to INR 1,266,000/t from INR 1,252,000/t, tracking gains in LME copper prices amid improved sentiment in the international market.
Other updates
China manufacturing contracts
China’s official manufacturing PMI unexpectedly slipped into contraction territory in July. The reading signalled weaker industrial activity and softer demand from the world’s largest consumer of base metals. Slower manufacturing activity could weigh on demand for aluminium, copper, zinc and nickel, especially from the construction, machinery and manufacturing sectors. Unless Beijing announces fresh economic stimulus, the slowdown may limit further gains in LME prices.
Energy crisis boosts EV demand
Higher fuel prices, driven by the ongoing energy crisis, continue to accelerate global electric vehicle adoption. The shift is strengthening long-term demand for non-ferrous metals used in batteries and charging infrastructure. Aluminium is expected to benefit from greater use in lightweight vehicle bodies and battery enclosures. Copper and nickel demand should also remain supported as EV production expands.
Azerbaijan aluminium exports surge
Azerbaijan’s aluminium exports rose sharply during the first half of 2026. The increase reflects stronger overseas shipments and improved export earnings. Higher exports could add modestly to global aluminium supply and ease regional tightness. However, the country’s relatively small production base is expected to limit its impact on the broader aluminium market.
India services sector growth slows
India’s flash HSBC Services PMI fell to 53.1 in July from 57.4 in June, marking the slowest expansion since February 2022. Business activity and new orders moderated, while input costs continued to rise. Although the index remained above the 50-point expansion mark, slower services growth could soften near-term domestic demand for aluminium and copper by weighing on commercial construction and capital expenditure.
LME nickel rebounds after Fed rate decision
LME nickel futures rebounded to around $17,100/t after the US Federal Reserve kept interest rates unchanged, easing concerns over tighter monetary policy and supporting sentiment across base metals. However, gains remained limited as weak stainless steel demand and ample refined nickel supply continued to weigh on the market. The combination of supportive macroeconomic signals and soft underlying fundamentals is expected to keep nickel prices volatile in the near term.
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