- Middle East tensions push Brent above $110/bbl as shipping risks mount
- Codelco sets record $350/t European copper premium for 2027
LME base metals traded higher on 20 October, supported by concerns over supply availability, geopolitical tensions and tighter inventories in selected metals. Zinc recorded the strongest d-o-d gain, rising 0.81% to $3,725/t, followed by nickel, up 0.59% to $15,662/t. Copper advanced 0.45% to $14,421/t, while aluminium edged 0.20% higher to $3,003/t. Lead remained unchanged at $1,894/t.
LME inventories recorded mixed movements. Zinc stocks fell the most, declining 1.97% to 163,050 t, followed by copper, down 0.70% to 232,175 t, and nickel, lower by 0.27% to 280,110 t. Aluminium inventories edged up 0.06% to 236,375 t, while lead stocks increased 1.17% to 338,125 t.
Domestic market overview
India’s non-ferrous market recorded mixed movements d-o-d, with aluminium scrap prices declining while P1020 aluminium ingot advanced. Copper armature scrap also eased.
Aluminium tense scrap (loose) fell by INR 1,000/t, or 0.42%, to INR 239,000/t ex-Delhi. Ex-Chennai prices declined by INR 2,000/t, or 0.82%, to INR 243,000/t. P1020 aluminium ingot rose by INR 4,500/t, or 1.38%, to INR 329,500/t. MCX aluminium fell 0.96% to $3,240/t.
Meanwhile, copper armature scrap (Cu 99%) declined by INR 5,000/t, or 0.37%, to INR 1,335,000/t. MCX copper gained 0.06% to $13,935/t.
Other updates
Middle East tensions push oil above $110/bbl
Brent crude rose 1.3% to $110.21/bbl on 21 October. Escalating Middle East tensions and threats to shipping routes heightened supply concerns. At least 18 vessel attacks were reported over the preceding two weeks. US crude inventories also fell by 4.9 million barrels in the week ended 16 October, according to American Petroleum Institute data. The combination of maritime risks and declining inventories supported prices despite intermittent diplomatic efforts.
Indonesia expands into primary aluminium production
Aluminium reduction cells at Indonesia Morowali Industrial Park’s Taijing project have been energised, according to a 20 October report. The first phase, developed by PT Infinity Aluminum Industry, targets 300,000 t/y, within a planned total capacity of 600,000 t/y. The commissioning milestone advances Indonesia’s expansion into primary aluminium production. The pace of commissioning, power availability and production ramp-up will determine when the additional metal reaches the market.
Codelco sets record European copper premium at $350/t for 2027
Chile’s Codelco has offered European customers a record premium of $350/t for refined copper deliveries in 2027, up 7.7% from $325/t for 2026. Aurubis separately raised its 2027 European premium to $347/t from $315/t. Traders have redirected copper shipments towards the United States amid potential import tariffs, contributing to tighter availability elsewhere. Mine disruptions, including problems at Codelco’s El Teniente operation, have added to supply concerns.
Kazakhstan launches $1.8 bn copper smelter project
Kazakhstan has begun construction of a $1.8 billion copper smelter in Aktogai, Abai Region, with planned annual capacity of 300,000 tonnes of cathode copper. KAZ Minerals is developing the facility with China’s NFC as engineering partner. First production is scheduled for 2030, and the project is expected to create more than 1,000 jobs. The complex will also produce gold, silver and sulphuric acid. The investment aims to expand domestic copper processing.
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