- Oil prices fall amid expectations of easing Hormuz disruptions
- EGA restarts 25% of Al Taweelah aluminium smelter capacity
LME base metals traded mixed on 26 August. Zinc recorded the sharpest decline of 1.02% d-o-d to $3,893/t, followed by nickel, down 0.96% to $16,887/t, and copper, which slipped 0.58% to $14,253/t. Aluminium eased 0.43% to $3,225/t, while lead edged higher by 0.21% to $1,911/t.
LME inventories recorded mixed trends on 26 August. Zinc stocks posted the steepest decline, falling 2.34% d-o-d to 95,050 t, while copper inventories rose 0.53% to 238,725 t. Lead stocks gained 0.39% to 412,200 t, nickel inventories edged higher by 0.02% to 268,608 t, while aluminium stocks were unchanged at 246,825 t.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 26 August. Aluminium tense scrap remained unchanged at INR 251,000/t ex-Delhi and INR 247,000/t ex-Chennai.
Meanwhile, copper armature scrap (Cu 99%) rose by INR 5,000/t, or 0.4%, to INR 1,310,000/t. The domestic copper scrap market strengthened despite LME copper prices easing 0.58% d-o-d.
Other updates
Oil prices fall as Iran-Oman talks raise hopes of easing Hormuz disruption
Oil prices extended losses on 27 August as diplomatic efforts between Iran and Oman raised expectations of improved shipping through the Strait of Hormuz. Brent crude traded around $86.50/barrel, while WTI stood near $82.23/barrel. Shipping activity through the waterway has shown some improvement, although flows remain below normal levels.
EGA advances Al Taweelah smelter restart after March attack
Emirates Global Aluminium has restarted 315 of 1,262 reduction cells at its Al Taweelah smelter, bringing 25% of the facility back online after the 28 March attack. EGA is restarting cells across all three potlines, while each cell generally takes about a week to stabilise. The smelter has annual nameplate capacity of around 1.5 million tonnes (mnt). However, EGA expects hot-metal production to return to pre-incident levels only in Q1CY’27, limiting the immediate impact on regional aluminium supply.
North China copper supply tightens, pushing spot premiums higher
North China’s copper market tightened on 27 August. Spot #1 copper cathode premiums rose to an average RMB 170/t, up by RMB 100/t from the previous session. Suppliers held back readily available material ahead of month-end. The procurement sentiment index rose to 1.39, signalling improved restocking activity. However, the average transaction price fell RMB 245/t to RMB 109,090/t as higher futures prices limited buying interest. Tighter Chinese supply could keep regional premiums and import replacement costs firm, supporting domestic copper prices despite cautious demand.
South China aluminium supply tightens as inventories decline
South China’s aluminium spot market tightened on 26 August as limited arrivals and lower inventories prompted sellers to hold cargoes. Spot premiums rose to RMB 210-250/t over the SHFE September contract, from RMB 140-180/t a day earlier. Downstream buyers remained cautious after the price rise. Most followed buy-on-dips and just-in-time purchasing strategies, while traders supported the market through restocking. Firmer Chinese premiums could raise import and replacement costs and support domestic prices, although weak demand may limit further gains.
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