- Guinea’s bauxite curbs raise fresh aluminium supply concerns
- AI expansion strengthens long-term copper demand outlook
Base metals prices on the London Metal Exchange (LME) traded mixed on 26 May 2026, with gains in nickel, copper, and lead offset by weakness in aluminium and zinc. Nickel recorded the highest increase among major non-ferrous metals, rising 2.28% d-o-d to $18,973/t, followed by copper and lead, which gained 0.58% and 0.42% to $13,624/t and $2,015/t, respectively. Meanwhile, aluminium declined 0.90% to $3,673/t, while zinc edged lower by 0.32% to $3,533/t, reflecting mixed sentiment across the broader metals complex.
LME inventory levels remained largely stable across major base metals. Aluminium, nickel, and lead stocks were unchanged at 339,475 t, 279,072 t and 286,475 t, respectively. Meanwhile, copper inventories stood at 391,900 t, while zinc stocks were at 111,025 t, indicating relatively balanced exchange warehouse trends across the non-ferrous segment.
Domestic market overview
India’s non-ferrous scrap market remained largely stable d-o-d. Aluminium tense scrap (loose), ex-Delhi, was unchanged at INR 304,000/t, while ex-Chennai prices also remained steady at INR 311,500/t amid balanced regional market activity.
Meanwhile, Copper Armature scrap (Cu 99%), ex-Delhi, increased by INR 5,000/t or 0.4% d-o-d to INR 1,240,000/t from INR 1,235,000/t, supported by firmer buying interest and improved copper market sentiment.
Other market updates
Guinea’s bauxite export curbs raise concerns over China supply
Guinea is expected to introduce bauxite export restrictions from June 2026 to support domestic downstream processing and stabilise falling ore prices, raising concerns over raw material supply for China’s aluminium industry. Guinea’s bauxite exports increased 25% in 2025 to 183 million tonnes, pressuring FOB prices lower.
China, which sourced more than 75% of its bauxite imports from Guinea in 2025, could face tighter supply and higher alumina production costs if export volumes are restricted, potentially supporting global alumina and aluminium prices.
Oil retreats as markets monitor progress in US-Iran talks
Oil prices pulled back on 27 May after surging nearly 4% in the previous session, as traders monitored developments in US-Iran negotiations and prospects for reopening the Strait of Hormuz. Brent Crude declined 1.43% to around $95.16/barrel (bbl), while WTI crude fell 1.77% to nearly $91.23/bbl amid easing immediate supply concerns.
Market sentiment, however, remained cautious as renewed hostilities continued to cloud progress in peace discussions and disrupt efforts to normalise oil and gas transit through the key Middle East shipping corridor.
AI, power infrastructure to support copper demand outlook
Global copper demand is expected to remain supported in 2026, driven by rising consumption from AI servers, data centres, power infrastructure, and high-performance electronic components. Increasing electrification trends and expansion in advanced computing applications are continuing to strengthen long-term copper usage across industrial supply chains.
Leave a Reply