- LME warehouse inventories largely remain stable
- Zinc supported by year-end trade, supply tightness
Base metals prices on the London Metal Exchange (LME) rose sharply on 26 December, with broad-based gains across aluminium, nickel, copper, zinc, and lead. Aluminium prices rose 1.17% to $2,995/t, supported by firm sentiment, while nickel advanced 1.04% to $15,950/t. Copper posted a strong rally, surging 5.50% to $12,831/t, extending recent bullish momentum. Zinc prices climbed 1.60% to $3,140/t, and lead increased 1.03% to $2,015/t.
LME warehouse inventories were largely unchanged across the complex. Aluminium stocks stood steady at 521,050 t, while nickel inventories remained at 255,696 t. Copper stocks were also unchanged at 157,025 t. Zinc inventories held at 106,875 t, and lead stocks were stable at 248,900 t.
Domestic market overview
In India’s non-ferrous markets, BigMint assessed copper armature scrap at INR 1,100,000/t ex-Delhi, up by INR 45,000/t d-o-d. Meanwhile, aluminium Tense scrap prices icreased by INR 4,000/t d-o-d to INR 201,000/t ex-Delhi and by INR 500/t d-o-d to INR 190,500/t ex-Chennai, respectively.
Other market updates
Aluminium near multi-year highs on supply tightness
Aluminium strengthened sharply, tracking gains on the LME and hovering near over three-year highs amid rising global supply concerns. China reiterated its efforts to curb overcapacity, and with output set to exceed the 45 mnt cap this year, smelters are expected to avoid expansion in 2026, weighing on exports, which fell 9.2% y-o-y in November. Supply risks were further heightened by stalled Chinese projects in Indonesia and smelter disruptions in Iceland, Mozambique, and Australia. On the demand side, China’s aluminium imports declined 14% y-o-y to 0.24 mnt in November, though cumulative imports during Jan-Nov 2025 still rose 4.4% y-o-y to 3.60 mnt.
Hindustan Copper market cap nears ₹50,000 crore on sustained rally
Hindustan Copper shares extended gains for a seventh consecutive session, rising 8.5% to INR 516.30, levels last seen in March 2010, and pushing the company’s market capitalisation close to the ₹50,000 crore mark. The stock has delivered a sharp 48% return over the seven-day rally, supported by a surge in trading activity, with around 5 crore shares traded in the first hour compared with a 20-day average of 50 lakh. The momentum has been driven by a strong global copper rally, with LME prices nearing USD 13,000/t amid tariff concerns in the US, supply disruptions, and resilient demand.
Zinc supported by thin year-end trade and supply risks
Zinc prices firmed on thin year-end trading, aided by a weaker US dollar, speculative buying, and supply concerns linked to mine maintenance in central and southwest China, which is expected to tighten concentrate availability. SHFE inventories fell 5.7% w-o-w, underscoring near-term tightness, though gains were capped by weak Chinese macro indicators and a sharp 13.3% y-o-y rise in China’s zinc output to 654,000 t in November. Globally, refined zinc production is projected to increase 2.7% to 13.8 mnt in 2025, with the market showing a small deficit of 600 t in October but a cumulative surplus of 76,000 t during Jan-Oct 2025.
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