LME base metals prices rise d-o-d, stocks see mixed trends

• India adjusts WTO tariff proposal after US duty hike
• Indian aluminium stocks at LME warehouses rise in Jun

Base metals prices on the London Metal Exchange (LME) saw positive trends d-o-d, with nickel increasing by 2.08% to $15,290/tonne (t). Meanwhile, inventories at LME-registered warehouses registered mixed movements d-o-d, with aluminium recording the highest gain of 1.26%.

Indian market overview

In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 810,000/t ex-Delhi, unchanged 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

India revises WTO tariff proposal amid US duty hike

India has updated its WTO proposal for retaliatory tariffs following the US hiking steel and aluminium duties to 50% from 25%. The government believes that this move could impact production costs for Indian manufacturers reliant on these exports, potentially reducing competitiveness and profitability in global markets. The revised tariffs aim to balance trade terms under WTO norms.

Russian aluminium share in LME warehouses falls, Indian stocks rise

In June, the share of Russian-origin aluminium in London Metal Exchange (LME) warehouses declined to 66% from 69% in May, while the share of Indian-origin aluminium increased to 34% from 30%, LME data showed. Although the LME banned Russian metal produced after 13 April 2024, pre-ban stocks remain tradable, with Russian aluminium holdings steady at 221,875 t. Indian aluminium stocks rose to 114,150 t from 97,950 t.

For copper, Russia’s share in LME warehouses slipped to 53% as volumes fell to 31,225 t, while Chinese-origin copper dropped to 24,900 t, representing 42% of stocks. Meanwhile, Chinese nickel accounted for 63% of available LME stocks, up from 59% in May.

Oil rises on Russia sanctions risk, but output, tariff concerns limit gains

Oil prices edged higher as markets reacted to US President Trump’s announcement of an upcoming major statement on Russia, sparking concerns about fresh sanctions on the key oil exporter. Gains, however, were capped by expectations of increased OPEC+ output and lingering worries over the impact of US tariffs on global demand. While Brent and WTI recovered slightly from earlier losses, market sentiment remained cautious amid signs of rising supply, a weak Chinese demand outlook, and ongoing geopolitical tensions.