- Zinc records modest uptrend
- Smelter shutdowns tighten aluminium supply outlook
Base metals prices on the London Metal Exchange (LME) moved higher across the board, led by strong gains in nickel and lead. Nickel prices rose 1.11% d-o-d to $14,803/t, while lead climbed 1.02% to $1,984/t. Aluminium advanced 0.99% to $2,945/t, supported by steady fundamentals. Copper prices increased 0.87% to $11,881/t, and zinc edged up 0.26% to $3,072/t.
LME warehouse inventories showed mixed movements. Aluminium stocks remained unchanged at 519,600 t, while nickel inventories inched up 0.24% to 254,550 t. Zinc stocks increased marginally by 0.50% to 99,900 t. In contrast, copper inventories declined sharply by 2.36% to 160,400 t, and lead stocks fell 1.34% to 258,625 t.
Domestic market overview
In India’s non-ferrous markets, BigMint assessed copper armature scrap at INR 1,005,000/t ex-Delhi, up by INR 5,000/t d-o-d. Meanwhile, aluminium Tense scrap prices increased by INR 5,000/t to INR 197,000/t ex-Delhi, while prices remained unchanged at INR 188,000/t ex-Chennai.
Other updates
Chinese smelter, Antofagasta agree to record low processing fees
A Chinese copper smelter and Antofagasta Plc have agreed to set treatment and refining charges for copper concentrate at $0/t for 2026, a record low and sharply down from $21.25/t in 2025, reflecting weak smelter bargaining power amid surplus refining capacity and tight global concentrate supply. The agreement, which is expected to act as a benchmark for wider market negotiations, comes as rapid smelting capacity additions in China coincide with persistent mine disruptions across major producing regions, tightening ore availability. At the same time, strong inflows of refined copper into the US on import tariff concerns have constrained availability in other markets and supported a rally in LME copper prices. With processing fees typically accounting for around one third of smelters’ income, the sharp decline in TC RCs has intensified pressure on margins and raised concerns over the sustainability of the benchmark pricing system.
Aluminium edges higher on Mozal shutdown concerns
Aluminium prices rose 0.99% to $284/t after South32 confirmed it will place the Mozal smelter in Mozambique under care and maintenance by March, a move expected to tighten global supply in 2026. Prices were further supported by a 5.2% m-o-m drop in Japanese port inventories to 312,100 t and firmer premium offers for January-March shipments. However, gains were capped by weak demand signals from China, where aluminium output rose 2.5% y-o-y in November but imports of unwrought aluminium and aluminium products fell 14%, alongside a modest rise in Shanghai exchange inventories. The near-term outlook remains mixed amid opposing supply constraints and demand-side headwinds.
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