- Aluminium scrap prices mixed in domestic market
- Alcoa expects higher alumina, aluminium output in CY’26
Base metals prices on the London Metal Exchange (LME) showed mixed trends on 28 January, reflecting divergent movements. Aluminium prices rose 0.58% to $3,207/t, supported by continued buying interest, while zinc edged up 0.25% to $3,351/t. In contrast, nickel slipped 1.91% to $18,169/t, copper eased 1.46% to $13,007/t, and lead declined 0.88% to $2,020/t, weighing on overall market sentiment.
LME warehouse inventories showed uneven shifts, highlighting mixed supply conditions. Aluminium stocks fell 0.60% to 502,250 t, zinc inventories declined 0.70% to 110,550 t, and lead stocks dropped 1.14% to 211,175 t, signalling slightly tighter availability. Nickel stocks inched up 0.06% to 285,726 t, while copper inventories rose 1.07% to 172,350 t, indicating modest inflows and relatively comfortable near-term supply on the exchange.
Domestic market overview
In India’s non-ferrous metals markets, aluminium Tense scrap prices showed mixed movement d-o-d. Ex-Delhi assessments were unchanged at INR 207,000/t, reflecting subdued buying interest, while ex-Chennai prices jumped by INR 500/t to INR 212,000/t, indicating notably stronger regional demand. Meanwhile, copper armature scrap prices, ex-Delhi, increased by INR 13,000/t to INR 1,133,000/t, pointing to increase in demand among market participants.
Other updates
Alcoa forecasts higher alumina, aluminum output in 2026
Alcoa Corp., the US aluminum producer, reported a net income of $1.17 billion for 2025, up from $60 million in 2024, alongside a 15% Q4 revenue increase to $3.4 billion. CEO William F. Oplinger attributed the growth to record production at five aluminum smelters and one alumina refinery, resolution of an Australian tax dispute, and the Kwinana refinery closure. Looking ahead, Alcoa expects alumina production of 9.7-9.9 mnt and aluminum output of 2.4-2.6 mnt in 2026 as smelter restarts continue. While first-quarter maintenance and restart costs are anticipated, the company expects supportive market conditions for long-term growth and operational stability.
Russia faces mounting hurdles to crude oil exports
Russia is struggling to offload crude oil as Indian imports have fallen to a nearly three-year low, creating logistical bottlenecks and swelling floating storage, read a report on 27 January. Around 140 million barrels of Russian crude are currently sitting on idling tankers, with congestion increasing near India’s coastline and off Oman, while some vessels are diverting toward China. Russian oil deliveries to India dropped to about 1.2 million bpd in December and have averaged roughly 1.12 million bpd so far in January, the weakest levels in almost three years. The slowdown follows the EU’s ban on petroleum products made from Russian crude from 21 January, alongside tighter maritime enforcement by several European countries targeting Russia’s shadow fleet, further complicating Moscow’s export flows.
Zinc market defies expectations, tight supply keeps LME high
The zinc market is trading at three-year highs on the LME, defying bearish forecasts. Global mine output rose 6.5% in early 2025, but much of the surplus remains in China, slowing flow to refined markets. Chinese concentrate imports jumped 30%, boosting refined output by 8.4%, while smelter production outside China fell due to closures in Brazil, Kazakhstan, and South Korea. LME stocks partially recovered to 138,000 t, but cancelled warrants rose to 12,100 tons, highlighting ongoing tightness. The East-West supply gap may keep LME prices elevated until more Chinese metal reaches Western markets.
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