- Iran war reroutes aluminium flows; Europe premiums jump
- Tariff play revives Comex pull, squeezing copper availability
Base metals prices on the London Metal Exchange (LME) traded lower on 27 May 2026. Copper recorded the steepest fall of 0.68% d-o-d to $13,531/t, followed by zinc, which declined 0.58% to $3,513/t. Lead slipped 0.45% to $2,006/t, while nickel and aluminium fell 0.16% and 0.03% to $18,943/t and $3,636/t, respectively.
LME inventory levels also remained under pressure across the base metals segment. Zinc stocks saw the sharpest decline of 0.97% d-o-d to 109,950 t, followed by copper inventories, which dropped 0.61% to 389,525 t. Lead, nickel, and aluminium stocks also decreased by 0.27%, 0.07%, and 0.04% to 285,700 t, 278,886 t, and 339,350 t, respectively.
Domestic market overview
India’s non-ferrous scrap market remained stable d-o-d. Aluminium tense scrap (loose), ex-Delhi, was unchanged at INR 304,000/t, while ex-Chennai prices also held steady at INR 311,500/t, indicating balanced regional market activity.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, also remained unchanged d-o-d at INR 1,240,000/t.
Other market updates
Canada diverts aluminium to Europe amid Iran war-led supply squeeze
Canada is increasing aluminium shipments to Europe as higher regional premiums and the US 50% tariff make EU netbacks more attractive. Middle East supply disruptions due to the Iran war have tightened availability, with the region accounting for 9% of global aluminium smelting capacity.
European duty-paid aluminium premiums surged 73% to $621/t, while the US Midwest premium hit a record $1.16/lb ($2,557/t). With LME aluminium near $3,670/t, end-user costs have risen to around $6,200/t in the US and $4,300/t in Europe.
Copper hits one-week low as Middle East tensions weigh
LME copper slipped to a one-week low as renewed Middle East tensions lifted the US dollar and crude oil prices, raising inflation and global growth concerns. Three-month LME copper fell 0.1% d-o-d to $13,514.5/t, after touching its lowest level since 21 May.
SHFE copper also declined 1.1% to RMB 103,830/t ($15,316/t), its lowest since 20 May. Other LME base metals traded weak, with aluminium down 0.5% to $3,619/t, zinc down 0.2%, lead down 0.4%, nickel down 0.8%, and tin edging 0.1% lower.
US tariff speculation revives copper trade flows
Copper traders are again diverting metal to the US as renewed import tariff speculation widens the Comex-LME spread. Front-month Comex contracts have moved over $500/t above LME cash prices, making US shipments attractive, with imports expected to rebound to 150,000-200,000 t/month.
The shift in trade flows is tightening global availability, with Trafigura reportedly moving to withdraw large volumes of copper from LME warehouses to capture higher Comex prices. Copper touched $13,746/t in London, up around 43% y-o-y, while possible refined copper tariffs from January 2027 could further draw down LME stocks.
Oil rebounds as US-Iran tensions flare
Oil prices surged over 3% after Iran’s Revolutionary Guards targeted a US airbase in retaliation for earlier US strikes near Bandar Abbas. Brent Crude rose to $95.80/bbl, while WTI climbed to $91.99/bbl.
The rebound followed a 5% fall in the previous session amid hopes of a possible US-Iran deal to reopen the Strait of Hormuz. Market volatility remained high as geopolitical risks, constrained supplies, and a 2.8 mbl drop in US crude inventories supported prices.
Fed’s Jefferson flags inflation focus amid resilient labour market
Federal Reserve Vice Chair Philip Jefferson said the Fed’s priority remains bringing inflation back to its 2% target, while noting that the US labour market has remained “very resilient” despite energy shocks and macro uncertainty.
Jefferson said the current monetary policy stance is appropriate, with the federal funds target rate at 3.5-3.75%, but avoided giving any signal on the June Federal Open Market Committee (FOMC) outcome, stressing a data-driven approach amid upside inflation risks.
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