- DR Congo bans copper and cobalt concentrate exports
- Japan earthquake temporarily disrupts auto production
LME base metals traded mixed on 06 August. However, nickel posted the sharpest decline, falling 2.06% d-o-d to $16,762/t. Meanwhile, zinc gained 0.94% to $3,764/t, while aluminium advanced 0.56% to $3,259/t. In contrast, copper and lead both edged 0.05% lower to $14,104/t and $1,885/t, respectively.
LME inventories declined across most major base metals. Notably, copper stocks recorded the largest fall, down 2.74% d-o-d to 231,825 t. Meanwhile, lead inventories dropped 0.76% to 431,550 t, while aluminium stocks slipped 0.57% to 259,400 t. Additionally, zinc inventories eased 0.20% to 98,450 t, and nickel inventories edged 0.04% lower to 264,780 t.
Domestic Market Overview
India’s non-ferrous scrap market remained largely stable on 06 August. Aluminium tense scrap (loose) held steady at INR 245,000/t ex-Delhi and INR 244,000/t ex-Chennai. Despite firmer international aluminium prices, stable domestic demand kept prices unchanged.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, declined by INR 2,000/t (0.2%) to INR 1,282,000/t from INR 1,284,000/t. However, MCX and SHFE copper futures strengthened, while domestic buyers remained cautious.
Other Updates
Japan earthquake disrupts auto production
Major Japanese automakers, including Toyota, Nissan and Honda, temporarily suspended production at several plants after a 7.1-magnitude earthquake disrupted component supplies and logistics. Consequently, short-term demand for primary and secondary aluminium used in vehicle bodies, wheels and cast components could weaken. However, the impact is expected to remain temporary if production resumes quickly, limiting the effect on overall aluminium consumption.
Korea Zinc reports strong first-half earnings
Korea Zinc reported first-half sales of US$8.8 billion, up 62.5% year on year, while earnings more than doubled, supported by higher non-ferrous metal prices and stronger refining margins. The results reflect resilient demand for refined zinc, lead and precious metals despite market volatility. Healthy smelter profitability also indicates stable downstream consumption, which could lend support to sentiment across the non-ferrous metals market.
DR Congo halts concentrate exports
The Democratic Republic of Congo imposed an immediate ban on copper and cobalt concentrate exports to promote domestic mineral processing and value addition. As the world’s largest cobalt producer and a major source of copper concentrates, the country’s decision is expected to tighten global concentrate availability. Following the announcement, LME copper prices rose 1.8% to US$14,369.50/t, while supply concerns could continue supporting copper and cobalt prices in the near term.
Higher gas costs pressure smelters
Natural gas shortages and elevated gas prices have increased electricity costs across Southeast Asia, raising production expenses for energy-intensive industries such as aluminium smelting. Since electricity accounts for a significant share of aluminium production costs, sustained high energy prices could reduce smelter profitability or limit output growth. Consequently, tighter supply and higher production costs may continue providing support to aluminium and other non-ferrous metal prices.
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