- Indonesia’s aluminium exports more than doubled in June.
- RBI likely to keep policy rates unchanged.
LME base metals traded mixed on 03 August. Aluminium posted the strongest gain, rising 1.19% d-o-d to $3,222/t, while nickel recorded the steepest decline, slipping 1.10% to $17,060/t. Lead eased 0.59% to $1,867/t, copper climbed 0.57% to $13,870/t, and zinc edged lower by 0.05% to $3,641/t.
LME inventories declined across all major base metals. Copper stocks registered the sharpest fall, dropping 2.17% to 249,850 t, followed by lead, down 1.03% to 441,275 t. Zinc inventories fell 0.89% to 99,800 t, aluminium stocks declined 0.71% to 264,400 t, while nickel inventories slipped 0.50% to 266,172 t.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 03 August.Aluminium tense scrap (loose), ex-Delhi, remained unchanged at INR 245,000/t, while ex-Chennai prices rose by INR 1,000/t (0.4%) to INR 244,000/t from INR 243,000/t.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, gained INR 6,000/t (0.5%) to INR 1,276,000/t from INR 1,270,000/t, tracking firmer LME copper prices and steady domestic buying interest.
Other updates
RBI expected to keep rates unchanged
Economists expect the Reserve Bank of India to leave policy rates unchanged despite renewed monetary tightening by several global central banks. Stable borrowing costs should continue supporting investment in infrastructure, manufacturing and construction, sustaining domestic demand for aluminium, copper and zinc. Policymakers, however, are likely to remain cautious as inflation risks and global economic uncertainty persist.
European diesel margins surge
European diesel refining margins climbed to record highs as tighter Mediterranean supplies and refinery disruptions reduced fuel availability. Rising diesel prices have lifted mining, smelting and freight costs across the metals supply chain, increasing production expenses for aluminium, copper and zinc. Persistently high energy costs could therefore continue supporting non-ferrous metal prices.
Indonesia’s aluminium exports more than doubled in June
Indonesia more than doubled its aluminium exports in June as new smelting capacity increased shipments, strengthening the country’s position in the global primary aluminium market. The expansion reflects the government’s strategy to promote domestic mineral processing after restricting raw material exports. If output continues to rise, additional supplies could ease regional tightness and weigh on aluminium premiums across Asia.
Jinchengxin advances Lonshi Copper Mine development
Chinese miner Jinchengxin will develop the East Zone of the Lonshi Copper Mine through underground mining, marking another step in expanding the project’s long-term production capacity. The company remains confident about copper’s medium- to long-term outlook, supported by demand from electrification, renewable energy and power grid investment alongside constrained global mine supply. The project should strengthen future copper output, although new production will enter the market gradually.
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