- Russian supply risks add upside to crude markets
- BHP bets on copper growth, US investment appeal
Base metals prices on the London Metal Exchange (LME) saw slight positive trends d-o-d, with copper increasing by 1.18% to $10,187/tonne (t). Meanwhile, inventories at LME-registered warehouses registered saw negative movements d-o-d, with lead recording the highest decline of 1.72%.
Notably, aluminium prices have surged globally, fuelled by a rare supply squeeze, robust demand, and US tariffs introduced by President Donald Trump. The US Midwest premium has jumped 177% this year, while the LME benchmark has risen 17% since April.
The rally is underpinned by production curbs in China and declining inventories in both LME and Shanghai warehouses. With demand continuing to strengthen, analysts caution that prices may climb further. Bank of America projects a global deficit by 2026, with aluminium potentially reaching $3,000/t.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 822,000/t ex-Delhi, marking a d-o-d rise of INR 2,000/t. Aluminium Tense scrap gained INR 1,000/t d-o-d, with prices at INR 196,000/t ex-Delhi and INR 198,000/t ex-Chennai, where the latter remained unchanged d-o-d.
Other market updates
Copper jumps to 15-month high on rate cut hopes
Copper surged to a 15-month high as investors grew optimistic about an impending US Federal Reserve rate cut, which is expected to boost demand and weaken the dollar, making commodities such as copper more attractive for global buyers. Futures on the LME climbed up by 1% to $10,173/t, marking the highest level since June 2024, amid broader risk-on sentiment and expectations of further easing by the end of the year.
Oil prices rise as Russian refinery attacks stoke supply concerns
Oil prices edged higher on Tuesday, as markets weighed potential supply disruptions after Ukrainian drone strikes on Russian refineries. Russia, a key producer supplying over 10% of global oil, faces mounting risks from escalating attacks on its energy infrastructure, warning that strikes on export hubs such as Primorsk could limit Moscow’s ability to sell crude abroad and add further upside pressure to prices. Sentiment was also lifted by expectations of a US Federal Reserve rate cut, which has weakened the dollar and could support fuel demand, while forecasts of a 6.4 million-barrel drop in US crude inventories last week added to bullish momentum.
BHP underscores copper growth, US appeal
BHP highlighted strong copper growth prospects and the US investment advantage in its latest shareholder briefing, pointing to assets in Argentina, Chile, South Australia, and the US Resolution project with Rio Tinto. While executives stressed organic expansion over major acquisitions, they avoided commenting on potential buyouts such as NGEX Minerals. The update followed the $53-billion Anglo-Teck merger, with CEO Mike Henry also acknowledging rising costs and delays at BHP’s Jansen potash project in Canada.
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