- LME inventories remain unchanged across metals
- China’s liquid aluminium share declines in Dec’25
Base metals prices on the London Metal Exchange (LME) traded in a rangebound manner on 1 January, with modest gains and limited cues about future price direction. Aluminium prices edged lower by 0.10% to $2,993/t, reflecting cautious sentiment, while nickel rose 1.17% to $16,840/t, offering mild support. Copper prices inched up 0.99% to $12,546/t, tracking steady buying interest, while zinc and lead posted marginal gains of 0.08% and 0.05% to settle at $3,120/t and $2,012/t, respectively.
LME warehouse inventories were largely unchanged: Aluminium stocks were flat at 511,750 t, while copper inventories remained steady at 147,425 t. Nickel stocks were unchanged at 255,162 t, zinc inventories held at 107,625 t, and lead stocks were stable at 241,925 t, pointing to a broadly balanced supply situation on the exchange.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed copper armature scrap at INR 1,100,000/t ex-Delhi, down by INR 10,000/t d-o-d. Meanwhile, aluminium Tense scrap prices remained stable at INR 204,000/t ex-Delhi, increasing marginally by INR 500/t to INR 191,500/t ex-Chennai, respectively.
Other market updates
China’s liquid aluminium share slips
China’s proportion of liquid aluminium fell in December as the off-season and high aluminium prices weighed on downstream demand, a report showed. Aluminium production rose 1.9% y-o-y and 4% m-o-m, but weaker operating rates at downstream plants pulled the liquid aluminium share down by 0.8% m-o-m to 76.5%, driven by seasonal demand softness, margin pressure from high prices, and tighter environmental curbs in some regions. As a result, aluminium casting ingot output dropped 13.4% y-o-y but increased 7.7% m-o-m. Looking ahead to January 2026, operating capacity is expected to rise, but with demand easing and prices remaining high, the liquid aluminium ratio is forecast to decline further to around 75.1%.
Copper extends gains into 2026
Copper edged higher on the first trading day of 2026 after posting its strongest annual gain since 2009, supported by expectations of a tighter global market. LME copper, which surged 42% in 2025, was underpinned by mine disruptions, tariff-related concerns that boosted shipments to the US, and supply losses from key producers including Indonesia, Chile, and the Democratic Republic of the Congo. Prices hit multiple record highs during an end-year rally, making copper the top performer among LME base metals.
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