- China deploys first 2026 policy financing tranche for metals-intensive projects
- Indian aluminium tense scrap prices stable, copper armature scrap sees slight uptick
LME base metals traded mixed on 3 September. Zinc recorded the strongest gain, rising 1.22% d-o-d to $3,912/t. Aluminium followed, advancing 0.85% to $3,312/t, while copper gained 0.83% to $14,334/t. Meanwhile, lead edged higher by 0.47% to $1,904/t, while nickel slipped 0.75% to $16,786/t.
LME inventories recorded mixed trends. Zinc stocks posted the largest gain, rising 1.41% to 100,525 t. Lead inventories fell 1.25% to 399,600 t, while aluminium stocks declined 0.20% to 246,225 t. Copper stocks rose 0.15% to 233,850 t, and nickel inventories edged higher by 0.12% to 268,848 t.
Zinc prices gained despite higher LME stocks. Tight mined supply and low treatment charges supported prices. Meanwhile, improved China-LME arbitrage encouraged more metal flows into LME warehouses.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 3 September. Aluminium tense scrap remained unchanged at INR 253,000/t ex-Delhi and INR 247,000/t ex-Chennai. However, softer industrial demand and cautious buying limited price gains. India’s manufacturing PMI also fell to a five-year low in August.
Meanwhile, copper armature scrap (Cu 99%) rose by INR 2,000/t (0.2%) to INR 1,302,000/t. The increase tracked firmer LME copper prices and tighter physical conditions. Chinese copper inventories fell sharply, while Guangdong stocks reached a yearly low.
Other updates
Oil surges on US-Iran tensions, raise aluminium cost risks
Brent crude rose 6.9% week on week to $95.47/bbl, while WTI gained 9.5% to $91.30/bbl. Renewed US-Iran hostilities raised concerns over Middle East supply risks. Iran has also expanded restrictions on vessels using the Strait of Hormuz. As a result, shipping disruption risks have increased. Higher oil and freight costs could raise aluminium production and transportation expenses. However, increased Iraqi exports and a potential Ukraine peace deal could limit the rally.
China copper inventories fall as Guangdong supply hits yearly low
Chinese copper cathode social inventories fell 20,600 t w-o-w to 88,900 t on 03 September, according to SMM. Guangdong stocks also reached a yearly low. Limited arrivals and production cuts at some smelters contributed to the drawdown. Meanwhile, #1 copper cathode premiums rose by 60 yuan/t to 320 yuan/t for high-quality material. The higher premiums reflected tighter availability in the region.
China deploys first 2026 policy financing funds
China Development Bank began deploying its 2026 policy financing programme. The first RMB 460 million ($68.47 million) tranche covers battery manufacturing, nickel-chromium materials and transport infrastructure. The programme has increased to RMB 800 billion ($118.21 billion) from RMB 500 billion ($73.88 billion) in 2025. Consequently, infrastructure spending could support aluminium and copper demand. Battery and nickel-chromium projects could also support demand for related metals.
Atalco secures additional $100 million for Louisiana alumina refinery
The US Department of War committed another $100 million to Atlantic Alumina’s Gramercy refinery in Louisiana. This takes government investment in the project to $400 million. Existing backers have also committed or plan to commit another $400 million. The total strategic investment could therefore reach around $800 million. The funding aims to restore the refinery’s 1.2 mnt/year capacity. This would strengthen US domestic alumina supply and reduce supply-chain risks.
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