- Novelis produces first coil at Bay Minette plant
- Indonesia weighs moratorium on new semi-finished nickel plants
LME base metals traded mixed on 7 October. Lead recorded the strongest gain, rising 1.25% d-o-d to $1,897/t, followed by copper, up 0.42% to $14,476/t and nickel, which advanced 0.34% to $15,735/t. Meanwhile, aluminium slipped 0.53% to $3,117/t, while zinc eased 0.07% to $3,764/t.
LME inventories recorded mixed trends, with stocks declining across aluminium, nickel, copper and lead, while zinc inventories rose. Copper stocks recorded the steepest fall, down 0.79% to 242,975 t, followed by aluminium, down 0.62% to 238,875 t, lead down 0.53% to 349,625 t, and nickel down 0.28% to 284,178 t; zinc stocks rose 0.24% to 127,275 t.
Domestic market overview
India’s non-ferrous scrap market remained largely stable d-o-d on 07 October. Aluminium tense scrap remained unchanged at INR 244,000/t ex-Delhi and INR 246,000/t ex-Chennai, while aluminium P1020 was also steady at INR 344,000/t.
Meanwhile, copper armature scrap (Cu 99%) remained unchanged at INR 1,349,000/t. On MCX, copper advanced 1.41% to $14,320/t, zinc rose 1.42% to $4,243/t and lead gained 1.50% to $1,962/t, while nickel edged higher by 0.08% to $15,412/t. Aluminium slipped 0.06% to $3,405/t. The mixed futures movement did not translate into changes in the physical scrap market.
Other updates
Hormuz shipping risks raise aluminium supply chain concerns
Brent Oil rose 2.63% to 102.84/bbl on 8 October as Shipping activity through the Strait of Hormuz fell to its lowest level in more than two months. The decline followed a rise in tanker attacks. Kpler data showed only seven commodity vessels crossed the strait on 06 October. Crude flows fell to 10.1 million barrels per day, about 74% of pre-war levels. Meanwhile, renewed shipping risks are raising freight, insurance and security costs. The disruption could add pressure to aluminium supply chains.
Centinela strike adds pressure to Chilean copper supply
Workers at Antofagasta Minerals’ Centinela copper mine in Chile began an indefinite strike on 07 October. The action followed failed government-mediated negotiations. The two unions represent about 709 workers, or 22% of the mine’s direct workforce. Centinela produced 240,400 tonnes of copper in 2025. Therefore, a prolonged stoppage could tighten concentrate availability and physical premiums. However, Antofagasta has maintained its 2026 production guidance. The immediate supply impact therefore remains uncertain.
Indonesia weighs moratorium on new semi-finished nickel plants
Indonesia is considering a moratorium on new semi-finished nickel processing capacity. The proposal covers products such as nickel pig iron and ferronickel. The government aims to address persistent oversupply and weak nickel prices. Indonesia produced an estimated 2.60 million tonnes of mined nickel in 2025. That represented around 67% of global supply. Meanwhile, the global nickel market is projected to record a 261,000-tonne surplus in 2026. The policy could therefore moderate future Indonesian supply growth.
Novelis produces first coil at Bay Minette plant
Novelis has produced the first coil from the cold mill at its $5 billion Bay Minette plant in Alabama. The milestone marks the start of commissioning at the aluminium recycling and rolling facility. Commercial shipments are targeted for the second quarter of 2027. The plant is expected to add 600,000 t/year of rolled aluminium capacity. Consequently, it could support aluminium scrap demand and recycled metal consumption. It may also improve North American rolled-product availability.
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