- Alcoa agrees to acquire South32’s aluminium assets for $4.1 billion
- Brent remains above $100/bbl as tanker attacks intensify supply risks
LME base metals traded higher on 9 September. Zinc recorded the strongest gain, rising 0.77% d-o-d to $4,053/t, followed by aluminium, up 0.48% to $3,357/t. Copper advanced 0.40% to $14,768/t, while nickel gained 0.17% to $16,897/t. Lead bucked the trend, slipping 0.03% to $1,915/t.
Zinc prices gained on tightening mine and concentrate supply, record-low negative treatment charges and falling inventories. Meanwhile, rising risks of smelter cuts and tighter Western physical markets provided further support. A weaker dollar also aided the rally. However, the recent rise in LME zinc stocks points to some near-term supply relief.
LME inventories recorded mixed trends on 9 September. Zinc stocks posted the sharpest rise, gaining 2.01% d-o-d to 115,375 t, followed by copper stocks, which rose 0.53% to 237,725 t. Nickel inventories increased 0.10% to 271,008 t, while aluminium stocks remained unchanged at 244,525 t. Lead inventories declined 0.88% to 385,050 t.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 9 September. Aluminium tense scrap (loose) remained unchanged at INR 253,000/t ex-Delhi and INR 247,000/t ex-Chennai. P1020 aluminium ingot also held steady at INR 358,000/t.
Meanwhile, MCX aluminium rose 0.28% d-o-d to INR 3,912/t. However, domestic aluminium prices remained stable as the value chain faced no supply shocks or disruptions. Near-term ADC12 demand also remained subdued. Consequently, aluminium prices are expected to remain range-bound in the near term.
Copper armature scrap (Cu 99%) rose by INR 4,000/t, or 0.3%, to INR 1,320,000/t ex-Delhi from INR 1,316,000/t. MCX copper gained 0.91% d-o-d to INR 15,693/t. Firmer international copper prices supported the increase in domestic scrap values.
Other updates
Oil remains above $100/bbl as tanker attacks intensify supply risks
Brent crude remained above $100/bbl at around $101.05/bbl on 10 September, while WTI stood near $96.05/bbl. Brent has risen nearly 30% from early-August lows as the US-Iran conflict escalated and shipping attacks increased. Meanwhile, traffic through the Strait of Hormuz remains well below pre-war levels. Gulf oil exports are estimated at around 15–16 million bbl/day, keeping supply risks elevated.
Alcoa agrees to acquire South32’s aluminium assets for $4.1 billion
Alcoa has agreed to acquire South32’s interests in Worsley Alumina in Australia, Hillside Aluminium in South Africa and aluminium assets in Brazil for $4.1 billion upfront. The transaction will strengthen Alcoa’s vertically integrated portfolio and expand its exposure to bauxite, alumina and smelting. The deal represents a strategic ownership change rather than an immediate supply shift, as the assets remain operational.
Copper’s 45% surge accelerates aluminium substitution
Copper prices have climbed about 45% y-o-y, partly driven by demand from AI infrastructure, data centres and cloud computing. Aluminium prices have also risen around 28% y-o-y, but the widening price gap is encouraging Indian electronics and consumer-durable manufacturers to consider aluminium substitution. Selected refrigerator and air-conditioner applications are already seeing the shift. Consequently, product redesigns could support longer-term aluminium consumption in electrical applications.
EGA completes 80% acquisition of Italy’s Eco Green
Emirates Global Aluminium has completed its acquisition of an 80% stake in Italian recycling company Eco Green. The deal strengthens EGA’s position in Europe’s secondary aluminium market and improves access to recycled feedstock. Eco Green distributes more than 70,000 t of aluminium annually, including around 23,000 t of scrap collected and sorted at its Verona facility. Additionally, the transaction supports EGA’s strategy to expand its lower-carbon aluminium offering.
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