- Nalco targets mid-2026 Pottangi mine launch
- Oil steady amid Ukraine talks, Fed outlook
Base metals traded mixed on the London Metal Exchange (LME), with copper and zinc leading the positives as prices rose 0.53% to $11,678/t and 0.55% to $3,110/t, respectively. Aluminium also inched higher by 0.14% to $2,897/t, while nickel slipped 0.44% to $14,855/t. Lead registered the steepest decline, easing 1.19% to $1,994/t.
LME warehouse inventories displayed a similarly varied pattern. Zinc stocks posted the strongest build, rising 5.01% to 58,150 t. Copper inventories increased 1.23% to 164,550 t, while nickel stocks dipped 0.23%. Aluminium inventories fell 0.47%, and lead stocks dropped 2.72%, indicating tighter availability in the lead segment.
Domestic market overview
In Indias non-ferrous markets, BigMint assessed copper armature scrap at INR 1000,000/t ex-Delhi, up INR 3000,000/t d-o-d. Aluminium Tense scrap prices remained stable w-o-w, stood at INR 193,000/t ex-Delhi and INR 188,000/t ex-Chennai, stable d-o-d.
Other market updates
Fed’s expected rate cut may be the last for now amid policy divisions
The US Federal Reserve is set to deliver another interest-rate cut this week, but policymakers appear increasingly divided on whether further easing will be justified in early 2026. With inflation still running above target and the economy showing mixed signals, several officials believe rates are already near a neutral level, making additional cuts riskier. The lack of fresh economic data—due to the recent government shutdown is complicating decision-making, leaving Chair Jerome Powell to balance sharply differing views within the committee. As markets await Wednesday’s announcement and updated economic projections, analysts widely expect the Fed to pause after this move, signaling caution until clearer labour and inflation readings emerge.
Nalco advances plans for mid-2026 start of Pottangi bauxite mines
Nalco is moving ahead with its plan to start operations at the Pottangi bauxite mines in Odisha by June 2026, strengthening its integrated aluminium value chain and securing long-term raw material supply. The company has finalised Dilip Buildcon as the lowest bidder for developing and operating the project, while expanding capacity at its Damanjodi refinery with the addition of a fifth stream that will boost alumina output by 1 MTPA. Backed by a 50-year mining lease from the Odisha government, the project aligns with Nalco’s broader strategy to support future production growth and contribute to industrial development in the region.
Oil steady as markets track Ukraine talks and Fed policy signals
Oil prices held largely steady on Wednesday after a modest decline in the previous session, as traders monitored developments in Russia-Ukraine peace negotiations and awaited the U.S. Federal Reserve’s interest rate decision. Brent hovered near $62/bbl and WTI around $58/bbl, with sentiment supported by a sharper-than-expected draw in U.S. crude inventories but tempered by concerns of a growing global supply glut. Markets widely expect a 25-bps Fed rate cut, which could offer short-term demand support, while uncertainty over Russian supply persists amid sanctions and limited buyers. Progress—or setbacks—in peace discussions also remains a key driver, with any breakthrough potentially reshaping supply dynamics.
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