- Rio-Glencore discussions revive consolidation theme
- India services growth cools but still in expansion mode
Base metals prices on the London Metal Exchange (LME) were mixed in the latest session, reflecting sharp divergences across the metals complex. Aluminium prices were largely steady, inching up 0.08% to $3,091/t. Nickel led the gains, surging 32.99% to $17,155/t, providing strong support to the market. In contrast, copper saw a steep correction, plunging 28.92% to $12,721/t, while zinc slipped 1.03% to $3,135/t and lead declined 1.60% to $2,027/t.
LME warehouse inventories also moved unevenly, pointing to mixed supply signals. Aluminium stocks declined 0.40% to 499,750 t, while lead inventories fell 1.73% to 226,450 t. Copper stocks dropped sharply by 48.82% to 141,075 t, highlighting tightening availability. Meanwhile, nickel inventories jumped significantly by 92.91% to 276,300 t, and zinc stocks rose 2.37% to 108,000 t, indicating increased inflows of these metals.
Domestic market overview
In India’s non-ferrous market, aluminium Tense scrap prices remained unchanged d-o-d, with ex-Delhi and ex-Chennai assessments at INR 205,000/t and INR 200,000/t, respectively, indicating stable demand conditions across regions. Meanwhile, copper armature scrap prices, ex-Delhi, declined by INR 22,000/t (1.9%) to INR 1,110,000/t, reflecting mild downward pressure after recent highs.
Other updates
Rio Tinto-Glencore talks revive mega-merger prospects
Rio Tinto and Glencore have re-entered early-stage discussions over a potential buyout that could create the world’s largest mining company, with a combined market value of about $207 billion. The talks, which include the possibility of an all-share acquisition of Glencore by Rio Tinto, reflect the intensifying push among global miners to scale up exposure to future-facing metals such as copper, driven by the energy transition and AI-led demand growth. While Glencore shares jumped on confirmation of the talks, Rio Tinto’s stock fell amid concerns over valuation and deal discipline, highlighting investor caution despite the strategic appeal of consolidation in a tightening long-term supply environment.
Chinese buyers pull back as copper prices hit record highs
Chinese industrial buyers have significantly scaled back copper purchases after the metal’s stunning rally pushed prices on the LME above $13,000/t, extending gains amid tightening supply and strong global demand. As a result, many fabricators and downstream users in China are reluctant to buy at elevated price levels, contrasting with robust futures market activity where funds and traders respond to supply concerns and tariff-driven flows. This subdued physical demand from China, which typically accounts for a large share of global consumption, highlights the sensitivity of industrial buyers to sharp price moves even as underlying supply tightness persists and inventories adjust.
India’s services sector growth slows in Dec’25
India’s services sector activity moderated in December 2025, with the HSBC India Services PMI slipping to 58.0 from 59.8 in November, marking the weakest expansion in nearly a year. While the index remained above the 50 threshold that signals growth, the slower pace reflected easing new business inflows, softer output gains and stalled hiring activity, indicating a moderation in momentum at the end of the year. Nonetheless, the sector continued to expand, supported by steady demand, even as overall business confidence softened.
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