LME base metals prices remain range-bound d-o-d; stocks see positive trends

• China’s output drop lifts MCX aluminium tags
• Trump tariff concerns weigh on oil prices

Base metals prices on the London Metal Exchange (LME) remained rangebound d-o-d, with copper decreasing by 1.63% to $9,631/tonne (t). Meanwhile, inventories at LME-registered warehouses showed positive movements d-o-d, with copper recording the highest gain of 4.51%.

Indian market overview

In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 810,000/t ex-Delhi, down by INR 5,000/t d-o-d. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 197,000/t and ex-Chennai at INR 200,000/t.

Market updates

Aluminium prices rise on lower China output

Aluminium prices rose 0.51% d-o-d to INR 248.7/kg on the Multi Commodity Exchange of India (MCX) as China’s June output dropped 3.23% m-o-m due to plant shutdowns in Shandong. Tight supply conditions emerged, with Yunnan’s replacement projects expected to come online only in July. Despite higher LME inventories, combined LME-SHFE stocks remained 60% lower y-o-y. Production cuts in Qinghai and central China may further restrain supply, supporting prices amid weak demand and soft manufacturing data.

Oil slips as Trump’s tariff threats cloud demand outlook

Oil prices dipped early on Thursday as market sentiment weakened following former US President Donald Trump’s threat of a 50% tariff on Brazilian exports and plans to expand tariffs on copper, semiconductors, and pharmaceuticals. These moves fuelled fears of slowing global growth, particularly in Asia, where buyers grew cautious amid macroeconomic uncertainty. However, strong US petroleum demand and increased global air travel helped limit the decline.

Copper dips globally despite US tariff-driven rally

Copper prices declined on global exchanges even as US futures spiked following Donald Trump’s proposed 50% import tariff, which threatens to disrupt global supply chains. The sharp premium in US prices triggered a rush in copper shipments to the US ahead of the duties. While global sentiment remained cautious due to economic uncertainty, analysts noted a shift in market positioning, with traders covering shorts amid signs of stronger demand and tighter inventories, potentially setting the stage for a near-term rally.