- China copper scrap market faces severe supply constraints
- EGA, Alba restart expectations weigh on aluminium prices
LME base metals traded mixed on 04 September. Zinc recorded the strongest gain, rising 0.87% d-o-d to $3,946/t, followed by copper, which gained 0.57% to $14,416/t, and nickel, up 0.36% to $16,846/t. Meanwhile, lead edged higher by 0.21% to $1,908/t, while aluminium slipped 0.54% to $3,294/t.
LME inventories recorded mixed trends. Zinc stocks posted the sharpest movement, climbing 9.92% to 110,500 t, followed by nickel inventories, which rose 0.71% to 270,768 t, and copper stocks, up 0.34% to 234,650 t; aluminium stocks edged lower by 0.10% to 245,975 t, while lead inventories declined 0.69% to 396,825 t.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 4 September. Aluminium tense scrap (loose) remained unchanged at INR 253,000/t ex-Delhi and INR 247,000/t ex-Chennai, following the trend of weaker demand and subdued market activity since last week.
Meanwhile, copper armature scrap (Cu 99%) rose by INR 4,000/t, or 0.31% d-o-d, to INR 1,306,000/t ex-Delhi from INR 1,302,000/t. The move came despite mixed international copper prices, with LME copper gaining while MCX copper declined.
Other updates
Middle East tensions lift oil prices
Oil prices extended gains on 7 September as continued US-Iran attacks on vessels raised concerns over prolonged disruptions through the Strait of Hormuz. Brent crude rose 0.83% to $97.08/bbl, while traffic through the Strait fell to around 10 commodity vessels a day. Meanwhile, marine fuel markets tightened, with a potential 218,000 bpd fuel-oil deficit in Q3 2026.
German industrial output falls unexpectedly
German industrial production fell 1.1% m-o-m in July, compared with expectations for a 0.1% increase. The decline was led by a 9.2% fall in automotive output amid extended production shutdowns. However, industrial orders rose 2.5% m-o-m, providing some support to the broader manufacturing outlook. The weaker production reading could weigh on near-term European demand for aluminium, copper, and other industrial metals, although the impact is likely to remain moderate.
EGA, Alba restart expectations weigh on aluminium
Aluminium prices fell 0.78% to $2,347.6/t as expectations of improving production at Emirates Global Aluminium and Aluminium Bahrain encouraged profit-taking. However, tighter physical availability limited the downside, with SHFE inventories declining 6.8% w-o-w and stocks at major Japanese ports falling 8.8% m-o-m. The expected recovery of Gulf production could gradually ease supply pressure. Nevertheless, depleted inventories and ongoing disruptions continue to provide support to the aluminium market.
China copper scrap market faces severe supply, tax-invoicing constraints
China’s copper scrap market faced tighter compliant supply in August. The spread between primary copper and scrap widened above RMB 5,000/t. It stood at RMB 3,455/t at the start of August. Meanwhile, spot scrap transactions remained weak. Tax-inclusive invoicing rates for secondary copper feedstock rose to 11.5-12%. Higher invoicing costs tightened compliant domestic scrap supply. This supported scrap values despite subdued spot demand and created a mixed signal for copper demand.
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