Daily round-up: Nickel gains lead base metals; copper supply disruptions support non-ferrous market

• Shanghai property measures and potential US-Canada tariff cuts support metals demand
• Oil prices rise amid US-Iran tensions and Strait of Hormuz risks

LME base metals traded mixed on 19 August. Nickel recorded the strongest gain, rising 1.66% d-o-d to $17,113/t, followed by zinc, which fell 1.59% to $3,709/t. Aluminium slipped 1.19% to $3,228/t, while copper eased 0.76% to $14,050/t and lead was unchanged at $1,888/t.

LME inventories recorded mixed trends d-o-d. Copper stocks posted the sharpest movement, rising 9.06% to 223,550 t, followed by zinc stocks, which declined 1.68% to 86,525 t. Lead inventories fell 0.89% to 409,000 t, aluminium stocks eased 0.55% to 246,925 t, while nickel inventories edged higher by 0.17% to 265,170 t.

Domestic market overview

India’s non-ferrous scrap market witnessed mixed trends on 19 August. Aluminium scrap prices remained stable, while copper scrap prices declined. Aluminium tense scrap (loose) remained unchanged at INR 247,000/t ex-Delhi and INR 245,000/t ex-Chennai.

Meanwhile, copper armature scrap (Cu 99%) declined by INR 10,000/t, or 0.8%, to INR 1,290,000/t. The move broadly tracked softer LME copper prices, although the domestic market also reflected prevailing local trading conditions.

Other updates

Oil prices rise amid US-Iran tensions and Strait of Hormuz risks

Oil prices rose for a fifth consecutive session on August 20, 12:00 AM UTC as uncertainty surrounding the US-Iran conflict and risks to energy flows through the Strait of Hormuz persisted. Brent crude was around $91.99/bbl. Higher energy and freight costs can raise production expenses for energy-intensive metals, particularly aluminium. Meanwhile, geopolitical uncertainty can influence broader commodity pricing. However, the development remains an indirect driver for non-ferrous metals compared with copper supply disruptions and China’s demand-related measures.

Peru mine halt and Chilean storms raise copper supply concerns

Copper supply concerns grew as severe weather disrupted mining operations in Chile and Peru. Antofagasta cut its 2026 production guidance for Los Pelambres, while weaker Peruvian output added to supply risks. However, rebuilding LME inventories could ease near-term tightness and limit the immediate impact on prices.

Shanghai to ease housing measures from August 21

Shanghai will ease property-market measures from August 21, including reducing the minimum down payment for some second homes from 20% to 15% and offering subsidies of up to 80,000 yuan for eligible buyers. The measures are aimed at supporting property demand in one of China’s key economic centres. As a result, stronger construction and property activity could support consumption of aluminium, copper, zinc and other industrial metals.

US-Canada tariff deal could lower aluminium trade barriers

The United States and Canada are nearing a deal that could reduce tariffs on Canadian steel and aluminium from 50% to 25%. The lower rate could apply to up to 4 million tonnes of annual imports, while volumes above the quota may remain subject to the higher tariff. Therefore, the agreement could improve Canadian aluminium access to the US market and reduce regional trade barriers, although its impact would be more concentrated on aluminium than on the broader base-metals complex.