- India’s Shyam Metallics commissions 18,000 t/y aluminium foil facility
- China’s aluminium exports surge 45% y-o-y to record high in Jun’26
Base metals on the London Metal Exchange (LME) traded mixed on 16 July 2026, with nickel rising 2.07% d-o-d to $17,150/t, while zinc gained 1.27% to $3,591/t and aluminium advanced 0.63% to $3,170/t. Lead increased 1.24% to $1,875/t, whereas copper edged down 0.13% to $13,565/t.
LME inventories remained mixed across base metals. Copper stocks declined 0.96% d-o-d to 300,600 t, while aluminium inventories fell 1.05% to 281,600 t and zinc inventories dropped 1.39% to 111,875 t, indicating tightening physical availability. Nickel inventories edged up 0.05% to 274,848 t, while lead inventories surged 23.37% to a 14-year high of 456,575 t following fresh deliveries into LME warehouses, easing supply concerns for the metal.
Domestic market overview
India’s non-ferrous scrap market remained largely stable on 16 July. Aluminium tense scrap (loose), ex-Delhi, remained unchanged at INR 265,000/t, while ex-Chennai prices were also unchanged at INR 255,000/t.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, increased by INR 15,000/t, or 1.22% d-o-d, to INR 1,240,000/t, supported by firm domestic demand and continued declines in LME copper inventories.
Oil eases but geopolitical risks keep prices elevated
Global crude oil prices edged lower on 17 July 2026, with Brent crude declining 0.51% d-o-d to $84.04/bbl, while WTI crude fell 0.47% to $78.94/bbl. Natural gas slipped 1.61% to $2.86/MMBtu.
Oil prices remained near multi-week highs as markets continued to assess the risk of escalating conflict in the Middle East. Concerns over potential disruptions to crude exports continued to support prices despite the day’s pullback. At the same time, Asian LNG prices climbed to their highest level since March, reflecting fears of tighter energy supplies and stronger competition for cargoes.
Longer-term sentiment also remained constructive after the European Union unveiled its Electrification Action Plan, targeting electricity to account for 46% of total energy consumption by 2040, up from around 23% currently. The plan is expected to reduce fossil fuel import costs by up to EUR 260 billion annually by 2040, although elevated electricity-to-gas price ratios of more than 3.0x remain a key challenge for the transition.
Other updates
Geopolitical risks, lower US inflation support aluminium prices
Aluminium prices remained resilient as persistent geopolitical tensions in the Middle East and softer-than-expected US inflation supported market sentiment. US June CPI declined 0.4% m-o-m, marking its first monthly fall in six years, easing expectations of an immediate Federal Reserve rate hike.
On the supply side, China’s unwrought aluminium and aluminium product exports surged to a record 711,000 t in June, up 45.4% y-o-y, while tighter aluminium scrap availability continued to support raw material prices. However, rising overseas aluminium production capacity and weak seasonal downstream demand are expected to limit further upside, keeping aluminium prices range-bound in the near term.
Shyam Metallics commissions aluminium foil plant in Odisha
Shyam Metallics and Energy Ltd. has commenced commercial production at its 18,000 tonnes per annum (tpa) aluminium foil facility in Sambalpur, Odisha, through its subsidiary SMEL Steel Structural Pvt. Ltd. The company is also set to commission its 60,000 t/year Aluminium Flat Rolled Products (FRP) facility by September 2026, with a combined investment of around INR 800 crore.
Shyam Metallics expects the new downstream facilities to improve operating margins by 40-50% and increase revenue by 2-2.5 times, while supporting import substitution and strengthening India’s domestic aluminium manufacturing capabilities.
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