- Crude oil pressured by oversupply concerns
- Weak retail sales drag China’s growth outlook
Base metals on the London Metal Exchange (LME) showed a mixed performance, with copper and zinc making notable gains. Copper prices rose 0.77% to $11,800/t, while zinc surged 0.89% to $3,160/t. Aluminium and nickel, however, both posted slight losses, with aluminium falling 0.35% to $2,876/t and nickel slipping 0.31% to $14,605/t. Lead saw a marginal decline of 0.05%, trading at $1,985/t.
LME warehouse inventories displayed a mixed trend. Zinc stocks recorded a notable increase of 2.61%, rising to 61,925 t, while copper stocks saw a modest rise of 0.03%, reaching 165,900 t. Aluminium inventories inched up by 0.17% to 519,650 t, and nickel stocks also edged up 0.07%, totaling 253,032 t. Lead stocks experienced a slight decline of 0.31%, falling to 234,750 t, indicating a marginal tightening in availability for lead.
Domestic market overview
In Indias non-ferrous markets, BigMint assessed copper armature scrap at INR 1005,000/t ex-Delhi, up by INR 13,000 d-o-d. Aluminium Tense scrap prices remained stable w-o-w, stood at INR 194,000/t ex-Delhi and INR 187,000/t ex-Chennai, stable d-o-d.
Other market updates
China’s growth momentum weakens as factory output and consumption slow
China’s factory output growth eased to a 15-month low in November, while retail sales recorded their weakest performance since the end of zero-COVID restrictions, underscoring mounting pressure on the economy heading into 2026. Fading consumer subsidies, a prolonged property downturn and weak household confidence have dragged on domestic demand, leaving exports as a key growth pillar — an increasingly fragile strategy amid rising global trade barriers. Economists say the slowdown highlights structural challenges, with further stimulus seen as less effective and growth likely to remain subdued despite policymakers’ efforts to support consumption and investment.
Copper prices could hit new highs as traders rush metal into the US
Copper prices are climbing toward fresh record levels as traders increasingly divert metal into the United States ahead of potential import tariffs, tightening supply in other regions and lifting futures on both COMEX and the London Metal Exchange. Strong demand from AI-related infrastructure and renewable-energy sectors, alongside supply concerns from mine disruptions and shrinking inventories, has fueled a significant rally in copper this year, with the metal up more than 30 % in 2025 and nearing the $12,000 /t mark.
Oversupply and easing geopolitical risks weigh on crude prices
Crude oil prices remained under pressure, with futures posting a sharp weekly decline of around 4.4% as persistent oversupply and weak demand sentiment dominated market dynamics. Record US production, resilient Russian exports despite sanctions, and continued availability of discounted Iranian and Venezuelan barrels have reinforced concerns of excess supply, while progress in Ukraine-related discussions has eroded the geopolitical risk premium. Meanwhile, the Federal Reserve’s rate cut failed to shift market positioning, as traders stayed focused on rising product inventories and soft end-user demand, keeping the near-term outlook for oil skewed to the downside.
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