- LME inventories drop d-o-d, nickel bucks trend with minor rise
- MMG approves $900 million Khoemacau copper mine expansion
Base metals prices on the London Metal Exchange (LME) traded within a limited range in the latest session, with modest gains and limited directional cues across the complex. Aluminium prices rose 0.65% d-o-d to $3,016/t, supported by firmer sentiment, while nickel gained 1.05% to $16,820/t, providing mild upside support. Copper prices edged up by 0.37% to $12,470/t on steady buying interest. Zinc also posted a small gain of 0.30% to $3,127/t, whereas lead bucked the trend, easing 0.22% to $2,007/t.
LME warehouse inventories declined across most base metals, pointing to gradual tightening. Aluminium stocks fell 0.49% to 509,250 t, while copper inventories dropped 1.42% to 145,325 t. Zinc stocks decreased by 1.21% to 106,325 t, and lead inventories fell 1.07% to 239,325 t. In contrast, nickel stocks inched up by 0.05% to 255,282 t, indicating broadly balanced supply conditions on the exchange.
Domestic market overview
In India’s non-ferrous markets, BigMint assessed copper armature scrap at INR 1,110,000/t ex-Delhi, up by INR 10,000/t d-o-d. Meanwhile, aluminium Tense scrap prices remained stable at INR 204,000/t ex-Delhi and INR 191,500/t ex-Chennai, respectively.
Other market updates
Botswana: MMG approves $900 million Khoemacau copper expansion
International mining company MMG has approved a $900 million expansion at Botswana’s Khoemacau Copper Mine, paving the way for construction after completing a feasibility study. The project will extend mining into the Zone Five North, Mango and Zeta North-East deposits and add a new 4.5 mnt/year processing plant. Once completed, the expansion is expected to lift annual output to around 130,000 t of copper concentrate, along with more than four million ounces of silver, with first production targeted in the first half of 2028. MMG has also flagged potential for a further expansion phase that could raise copper output to as much as 200,000 t/year, with a feasibility study for the next phase planned.
Zinc eases as China demand concerns resurface
Zinc prices softened as weak economic indicators from China revived concerns over sluggish demand, while higher domestic output underscored ample near-term supply, with November production rising 13.3% y-o-y to 654,000 t. Losses were limited by improved sentiment after China’s manufacturing activity returned to expansion in December, alongside supply-side support from planned maintenance shutdowns at several zinc mines, which are set to tighten concentrate availability. A southwest China mine is scheduled for maintenance that could cut output by around 700 t in metal content, while SHFE zinc inventories declined 4.3% in late December, pointing to some tightening in visible stocks.
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