- Rio Tinto enhances Kitimat ops with long-life alumina conveyor system
- IEA expects prolonged impact from disruptions in Middle East energy supply
Base metals prices on the London Metal Exchange (LME) traded largely higher on a d-o-d basis on 16 April 2026, with modest gains in most metals, driven by macroeconomic cues and ongoing supply risks, while lead registered a decline. Zinc led the gains, rising 0.79% to $3,424/t, followed by aluminium, which was up 0.61% to $3,644/t. Nickel increased 0.58% to $18,239/t, and copper edged higher by 0.17% to $13,271/t. In contrast, lead declined 0.66% to $1,953/t.
On the inventory front, trends were largely negative, indicating tightening supply across several metals. Aluminium stocks fell 0.56% to 393,775 t, nickel inventories dropped 0.54% to 278,064 t, and lead stocks decreased 0.32% to 275,975 t. Meanwhile, copper stocks rose 0.50% to 402,625 t, and zinc inventories increased 0.47% to 116,475 t, suggesting relatively improved availability for these metals.
Domestic market overview
India’s non-ferrous scrap market showed a mixed trend d-o-d, with marginal gains in aluminium prices, while copper declined. Aluminium tense scrap (loose), ex-Delhi, increased by INR 500/t or 0.2% to INR 290,000/t from INR 289,500/t. Similarly, ex-Chennai prices rose by INR 2,000/t or 0.7% to INR 307,000/t from INR 305,000/t, indicating steady buying interest.
In contrast, copper armature scrap (Cu 99%), ex-Delhi, softened by INR 5,000/t or 0.4% to INR 1,145,000/t from INR 1,150,000/t, reflecting some easing in demand.
Other market updates
Rio Tinto commissions CAD 135 million alumina conveyor at Kitimat smelter
Rio Tinto has commissioned a CAD 135 million alumina conveyor system at its Kitimat smelter in Canada, marking a key infrastructure upgrade to strengthen raw material handling. The 1.1-km conveyor is designed to transport around 800,000 t/year of alumina, ensuring stable and efficient feedstock supply.
Technically, the new system offers a nearly 50-year operational life, replacing ageing infrastructure and enhancing reliability. It is expected to improve conveying efficiency, reduce downtime, and minimise dust emissions and spillage, supporting better environmental performance.
The development reinforces Rio Tinto’s focus on operational efficiency, asset longevity, and low-carbon aluminium production at its hydro-powered BC Works facility.
Egypt eyes $2 billion Chinese investment in aluminium sector
Egypt is in advanced talks with China’s Henan Zhongfu to secure up to $2 billion investment for setting up an aluminium manufacturing facility in the Suez Canal Economic Zone (East Port Said).
The proposed project will span around 1 sq. km and focus on producing aluminium sheets, battery components, and value-added products for automotive, rail, and aerospace sectors, with an estimated employment generation of nearly 3,000 jobs.
The investment comes amid supply disruptions in Gulf aluminium production, positioning Egypt as a potential regional manufacturing and export hub across Africa, Europe, and the Middle East.
IEA: Middle East energy output recovery may take 2 years
The International Energy Agency (IEA) expects that lost energy output from the Middle East could take around two years to recover, following ongoing geopolitical disruptions.
The crisis, driven by conflict and closure of the Strait of Hormuz, has disrupted fresh oil shipments, leading to emerging supply shortages, especially in Asia.
IEA also cautioned that the market may be underestimating long-term supply risks, with potential for higher energy prices and continued volatility, while keeping the option open for further strategic reserve releases if required.
Indian refiners line up crude cargoes to meet domestic demand
Indian oil refiners are actively securing additional crude cargoes to ensure stable domestic fuel supply, following the non-extension of US sanctions waivers on Russian and Iranian oil.
The move reflects a shift in sourcing strategy amid tightening global supply conditions, with refiners aiming to offset potential disruptions and maintain refinery throughput in a volatile market environment.
Nickel prices gain on macro support
LME nickel prices rose to $18,239/t, supported by China’s 5% Q1 GDP growth and stronger US data, including lower jobless claims (207,000). However, fundamentals remain mixed due to weak stainless steel demand in China and higher ore costs, while LME inventories edged up to 278,184 t.
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