- Peru’s copper output jumps on Chinese support
- Aluminium prices hit 2-week low globally
Base metals prices on the London Metal Exchange (LME) saw slightly negative trends d-o-d, with aluminium decreasing by 0.71% to $2,589/tonne (t). Meanwhile, inventories at LME-registered warehouses remained range-bound d-o-d, with zinc recording the highest decline of 0.62%.
Aluminium prices dropped in both Shanghai and London after the US extended its 50% import tariffs to a wider range of metal products, dampening demand outlook amid rising inventories and steady supply. Weakening sentiment pushed Shanghai futures to their lowest level since early August, while LME prices also slid to a two-week low, further pressured by higher Chinese aluminium output and increased imports.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 795,000/t ex-Delhi, down by INR 3,000/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.
Other market updates
Peru’s copper production rises in June, driven by Chinese firms
Peru’s copper output increased 7.1% y-o-y in June, reaching 0.229 mnt, largely supported by higher production from Chinese-operated mines, the Energy and Mines Ministry reported. Production at MMG’s Las Bambas mine surged 63.5%, while output at Chinalco more than doubled. However, Las Bambas is expected to see lower output in July due to a two-week blockade of a key transport route by informal miners. Overall, Peru produced about 1.34 mnt of copper in H1CY’25, up 3.5% y-o-y.
US broadens 50% tariffs on steel and aluminium products
The US has expanded its 50% tariffs to cover over 400 additional steel and aluminium derivative products from 18 August, according to a Federal Register notice. This marks another escalation under Trump’s second term, following multiple tariff hikes since January 2025, including raising aluminium duties to 25%, reinstating a uniform 25% steel tariff, and later doubling both to 50% in June. The move extends beyond raw metals to appliances and other goods containing steel or aluminium, further tightening US trade measures.
Oil slips as peace talk hopes ease geopolitical risks
Oil prices edged lower on Tuesday as markets assessed the prospect of US-brokered peace talks between Russia and Ukraine, which could ease sanctions on Russian crude. Analysts highlighted that reduced risks of further sanctions and Trump’s softened stance on secondary penalties for Russian oil importers have reduced immediate geopolitical pressures on the market.
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