- Adani-IHC to develop India’s largest aluminium complex.
- Hindustan Zinc achieves record first-quarter metal production.
Base metals on the London Metal Exchange (LME) traded mixed on 2 July 2026, with lead leading gains, rising 0.54% d-o-d to $1,876/t, followed by aluminium, which increased 0.52% to $3,092/t. Copper also edged up 0.20% to $13,326/t, while nickel declined 0.64% to $16,250/t and zinc slipped 0.34% to $3,487/t. Market sentiment remained mixed as continued inventory drawdowns supported industrial metals, while lingering macroeconomic uncertainty and cautious investor sentiment limited broader gains.
On the inventory side, copper stocks recorded the largest decline, falling 1.33% d-o-d to 324,850 t, followed by aluminium, down 0.63% to 301,775 t. Zinc and lead inventories declined 0.52% and 0.50% to 119,200 t and 295,900 t, respectively, while nickel inventories edged down 0.08% to 274,230 t.
Domestic market overview
India’s non-ferrous scrap market remained weak on 2 July. Aluminium tense scrap (loose), ex-Delhi, declined by INR 3,000/t, or 1.09% d-o-d, to INR 272,000/t, while ex-Chennai prices fell by INR 2,000/t, or 0.75%, to INR 265,000/t, tracking softer global aluminium prices.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, remained unchanged at INR 1,200,000/t amid subdued demand, as traders awaited a price recovery while maintaining sufficient inventory levels.
Oil prices rebound amid recovering Middle East exports
Global crude oil prices increased on 3 July 2026, with WTI crude rising 1.69% d-o-d to $69.05/bbl, while Brent crude gained 1.93% to $72.27/bbl. Natural gas advanced 0.91% to $3.23/MMBtu, while the US dollar index declined 0.55% to 100.77.
Saudi Arabia’s crude exports have recovered to nearly 90% of their pre-conflict levels, while tanker traffic through the strategic waterway continued to improve, easing concerns over supply disruptions. Both Brent and WTI remained on track for a fourth consecutive weekly decline, reflecting expectations of ample near-term crude availability despite ongoing geopolitical uncertainty.
Meanwhile, UAE’s ADNOC will shift the pricing of its offshore crude grades- Upper Zakum, Das and Umm Lulu, from the Murban benchmark to the Dubai benchmark, better aligning medium-sour crude with Asian market fundamentals.
The IEA projects the UAE’s oil output will increase to 5.0 million bpd in 2027, with total liquids production expected to exceed 5.2 million bpd. The move is expected to strengthen ADNOC’s competitiveness in Asia, where refiners in India, Japan and South Korea are seeking greater pricing flexibility amid recovering regional supply.
Other updates
Adani-IHC to invest $11.5 billion in Odisha aluminium project
Abu Dhabi’s International Holding Company (IHC) and Adani Group have signed an agreement to invest $11.5 billion in an integrated aluminium project in Odisha, marking India’s largest foreign investment in the metals sector. The two partners will hold equal 50% stakes in the joint venture, which will include an alumina refinery, aluminium smelter, captive power plant and downstream aluminium manufacturing park.
The project will have an annual capacity of 4 million t of alumina, 2 million t of aluminium and 1 million t of downstream aluminium products, making it Odisha’s largest aluminium complex. The project supports India’s goal of expanding domestic aluminium production to meet rising demand from the infrastructure, power, transport and renewable energy sectors while reducing dependence on imports of value-added aluminium products.
Hindustan Zinc reports record Q1 output
Hindustan Zinc reported its highest-ever first-quarter mined metal production for the fifth consecutive year, with output rising 1% y-o-y to 268,000 t in Q1 FY27, supported by improved ore grades. Refined zinc production increased 6% to 213,000 t, while total saleable metal rose 4% to 260,000 t, driven by debottlenecking initiatives at the Chanderiya, Dariba and Debari smelters.
Meanwhile, silver production remained largely stable at 149 t. The strong operational performance reinforces Hindustan Zinc’s position as India’s leading zinc producer and is expected to support domestic zinc availability amid steady demand from the infrastructure and steel sectors.
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