- Oil prices decline as OPEC, IEA cut 2026 demand forecasts
- Rio Tinto’s Tomago aluminium smelter secures $2.5 billion bailout package
LME base metals traded mixed on 12 August. Aluminium recorded the sharpest decline, falling 1.58% d-o-d to $3,311/t, while zinc gained 0.75% to $3,757/t and nickel rose 0.70% to $16,948/t. Meanwhile, copper slipped 0.18% to $14,132/t and lead edged higher by 0.16% to $1,910/t.
LME inventories declined across all major base metals on 13 August. Copper stocks recorded the steepest fall of 1.72% to 214,550 t, followed by aluminium at 253,400 t, down 0.59%; lead stocks fell 0.36% to 420,300 t, nickel declined 0.11% to 264,744 t, while zinc edged lower by 0.05% to 97,075 t.
Domestic market overview
India’s non-ferrous scrap market was largely stable d-o-d. Aluminium tense scrap remained unchanged at INR 245,000/t ex-Delhi and INR 240,000/t ex-Chennai.
Meanwhile, copper armature scrap (Cu 99%) also remained stable at INR 1,288,000/t ex-Delhi. The domestic market showed limited price movement despite mixed international trends.
Other Updates
EGA to spend $400 million on Al Taweelah recovery
Emirates Global Aluminium plans to spend about $400 million to restore its war-damaged Al Taweelah smelter. Only 18% of its 1,262 reduction cells have restarted.
EGA targets a return to full output by Q1CY’27. Therefore, the prolonged disruption could keep regional aluminium supply tight. It could also support aluminium prices and premiums while raising supply-chain risks.
Australia secures Tomago aluminium smelter future
The Australian government will provide a $2.5 billion bailout package over 10 years to secure the future of Rio Tinto-linked Tomago Aluminium. Earlier, in December, Rio Tinto had announced that it may cease operations at the smelter following the end of its electricity supply contract.
The facility, which can produce up to 590,000 t of aluminium a year, accounts for more than 30% of Australia’s aluminium output. Consequently, the agreement reduces the risk of capacity closure and supports regional supply stability.
Codelco abandons 2030 copper growth target
Chile’s Codelco has abandoned its target of reaching 1.7 million tonnes of annual copper production by 2030. Mine setbacks and project delays have weighed on its production outlook.
Codelco produced about 1.33 million tonnes in 2025. Meanwhile, slower growth from the world’s largest copper producer could tighten the medium-term global supply outlook. As a result, the development could provide support to copper prices.
Oil prices fall as OPEC and IEA cut 2026 demand forecasts
Oil prices declined after OPEC and the International Energy Agency lowered their 2026 demand forecasts. The IEA now expects demand to fall by 1.6 million b/d.
Meanwhile, OPEC reduced its growth forecast to 580,000 b/d. Lower energy prices could ease operating costs for energy-intensive aluminium smelters. However, geopolitical and shipping risks remain a concern.
Leave a Reply