LME base metals prices dip d-o-d; Vedanta’s profit drops 12% y-o-y in Q1FY’26

• Weak export orders drag China PMI below 50 in Jul’25
• Copper hits all-time low on MCX amid tariff tensions

Base metals prices on the London Metal Exchange (LME) dipped d-o-d, with aluminium decreasing by 1.38% to $2,565/tonne (t). Meanwhile, inventories at LME-registered warehouses registered varied movements d-o-d, with zinc recording the highest decline of 3.90%.

India market overview

In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 798,000/t ex-Delhi, up by INR 8,000/t d-o-d. Aluminium Tense scrap prices remained flat d-o-d, with ex-Delhi at INR 197,000/t and ex-Chennai at INR 200,000/t.

Market updates

China’s manufacturing contracts in July amid weak export demand

China’s manufacturing sector shrank in July, with the PMI falling to 49.5, below the 50-mark that separates growth from contraction. The drop was driven by declining new orders and export demand, marking the fourth straight month of export contraction. Production also slipped, leading firms to cut staff and reduce inventories. Despite a slight uptick in business confidence, selling prices dropped further due to intense competition, even as input costs rose. Economists warn that the earlier export boost from pre-tariff front-loading may fade, posing risks to third-quarter growth.

Vedanta’s Q1 profit drops 12%, EBITDA steady

Vedanta Ltd posted a 12% y-o-y drop in Q1FY’26 net profit to INR 3,185 crore, impacted by weaker metal prices, despite a 6% rise in revenue to INR 37,824 crore. EBITDA remained flat at INR 9,918 crore, with margins narrowing to 26.2% from 27.8% last year. Liquidity improved to INR 22,137 crore, aided by an INR 3,028 crore stake sale in Hindustan Zinc. Despite operational gains, including record low costs and higher output across key segments, Vedanta shares fell 1.81% to INR 426.75 following the results.

Copper hits record low on tariff jitters

Copper futures on MCX fell 4% to a record low of INR 861.70/kg after the US announced a 50% tariff on copper imports, excluding refined copper. The surprise move triggered a sharp sell-off, with US futures plunging 22% and LME prices down 1%.