- Oil prices face sharpest weekly fall since Jun’25
- Trump’s tariffs fuel higher US aluminum scrap demand
Base metals prices on the London Metal Exchange (LME) saw positive trends d-o-d, with copper increasing by 2.17% to $10,491/tonne (t). Meanwhile, inventories at LME-registered warehouses registered divergent movements d-o-d, with lead recording the highest gain of 6.82%.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed copper armature scrap at INR 856,500/t ex-Delhi, down by INR 7,500/t d-o-d. Aluminium Tense scrap prices were assessed at INR 192,000/t ex-Delhi, down by INR 1,000/t d-o-d, and at INR 192,000/t ex-Chennai, stable d-o-d.
Oil set for steepest weekly fall since June
Crude oil prices are heading for their sharpest weekly drop in four months amid expectations that OPEC+ may extend production increases at its upcoming meeting. Reports suggest the group could add up to 500,000 barrels per day, though some analysts remain uncertain about the final decision. Meanwhile, concerns over a potential supply glut are rising, with millions of barrels of unsold Middle Eastern crude lingering in the market, signaling pressure ahead for prices.
Trump’s tariffs drive aluminum recycling in US
The US aluminum industry is increasingly turning to recycling as Trump’s tariff hike on aluminum imports from 25% to 50% pushes demand for scrap higher. Recycling, which uses only about 5% of the energy required for smelting, offers a cheaper and lower-carbon alternative as domestic producers face pressure to cut reliance on imports.
Inventories of aluminum scrap have risen sharply, with a 35% y-o-y jump in July. While some companies like Century Aluminum are expanding production, others, including Alcoa, warn the tariffs could hurt demand. Meanwhile, recyclers and startups are racing to capture more discarded cans and metal parts, with policymakers pushing for higher recycling rates amid the industry’s shifting dynamics.
Copper hits highest in over a year
Copper prices surged to their highest in more than a year, driven by supply disruptions at Freeport-McMoRan’s Grasberg mine in Indonesia and expectations of US rate cuts boosting demand.
LME benchmark futures briefly crossed $10,500/t, while CME futures rose above $10,976/t. Analysts estimate global supply losses could reach 591,000 t by 2026, pushing the market into a 400,000-tonne deficit this year. Weak US job data further fuelled speculation of rate cuts, weakening the dollar and adding momentum to copper’s rally.
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