- Nickel stocks surge to multi-year highs
- RBI allows weaker rupee as inflows fade
Base metals traded mostly positive on 3 December, with LME copper leading the gains as prices jumped 3.07% to $11,488/t supported by firmer demand signals and marginal inventory builds. Aluminium also strengthened, rising 1.1% to $2,897/t while nickel gained 0.49% to $14,873/t.
Meanwhile, LME warehouse inventories showed divergent movements, with copper stocks rising 0.22% — the highest increase among major metals while aluminium and lead saw notable declines of 0.47% and 1.48%, respectively.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed copper armature scrap at INR 945,000/t ex-Delhi, stable d-o-d. Aluminium Tense scrap prices were assessed at INR 188,000/t ex-Delhi, and at INR 184,000/t ex-Chennai, both are stable d-o-d.
Other updates
Glencore’s copper expansion plans despite short-term cuts
Glencore plans a major ramp-up in copper output to around 1.6 mnt by 2035, driven by new mine developments and restarts, even as it faces near-term production setbacks. The company expects copper output to rise to 1.1 mnt by 2029, up from 850,000-875,000 t in 2025, supported by projects such as the 2028 restart of the Alumbrera mine and expansion work at Chile’s Collahuasi operation. But ongoing development at Collahuasi has pressured short-term volumes, prompting Glencore to cut its 2026 guidance to 810,000-870,000 t and trim its 2025 outlook due to lower ore grades and operational challenges.
Copper hits fresh record as tariffs, stock withdrawals spark frenzy
Copper surged past $11,500/t on the LME, setting a new all-time high as tariff fears, rapid US-bound stockpiling and sharp LME warehouse withdrawals tightened global supply. Rising US arbitrage, mine disruptions, collapsing visible inventories and widening regional premiums are now driving a two-world copper market — surplus inside the US but deficit everywhere else. With financial microstructure overpowering fundamentals, analysts warn of persistent tightness, elevated LME support and a potential squeeze by early 2026.
LME and SHFE nickel stocks climb to multi-year highs
Nickel inventories on the LME and SHFE have surged to multi-year highs, underscoring persistent oversupply in the global market. LME stocks stayed above 250,000 tons at November-end — up 57.6% so far this year and at their highest level in more than four years — while SHFE inventories exceeded 40,000 tons, a seven-year peak. Despite minor early-December drawdowns, rising Indonesia-led production continues to expand global refined output, keeping supply conditions loose. Market participants note that policy swings and environmental issues in Indonesia have had only limited impact, suggesting supply pressure will remain elevated.
RBI signals tolerance for weaker rupee as inflows slow
India’s Central Bank is allowing the rupee to drift lower as slowing foreign inflows, a wider trade gap and softer external demand weigh on the economy. The currency hit a record low of 90.42 per dollar after falling 1.3% in seven sessions, with the RBI now intervening mainly to curb volatility rather than defend any specific level. With foreign investors pulling $17 billion from equities this year and FDI momentum easing, officials say there is little justification for spending reserves aggressively. While the weaker rupee may dent the appeal of Indian assets, policymakers and investors alike expect India’s strong economic growth to help offset pressure, with potential stability seen in 2026.
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