- Japanese aluminium premium plunges 41% in Q3CY’25
- Vedanta to boost rare earth processing, aluminium recycling
At the close of trading on 27 June 2025, base metals prices on the London Metal Exchange (LME) saw positive trends w-o-w, with zinc witnessing the highest gain of 5.65%. Meanwhile, LME warehouse stocks exhibited negative trends, with copper declining the steepest, by 7.99%.
On the LME, three-month aluminium prices stood at $2,595/tonne (t), up by 1.78%, while nickel increased by 1.56% w-o-w to $15,245/t. Copper prices were at $9,878/t, up by 2.54% w-o-w, while zinc increased by 5.65% w-o-w to $2,779/t. Lead was up by 2.61% w-o-w to $2,044/t.
LME aluminium prices hit a three-month high on 23 June 2025 after US airstrikes on Iran raised concerns over rising energy costs and Middle East supply risks. With energy forming 45% of smelting costs and the region supplying 9% of global output, fears of a Strait of Hormuz blockade pushed prices up by 2%.
India’s imported aluminium scrap prices fluctuated by up to $40-50/t w-o-w, influenced by strong global demand and ongoing supply constraints. Persistent raw material shortages and firm price settlements by a major automaker helped maintain stable prices despite market fluctuations. Buying activity in the market for the week under review was heard to be moderate.
Japan’s aluminium premium for Q3CY’25 dropped 41% q-o-q to $108/t, the lowest since early 2024, due to weak demand, high port inventories, and market oversupply. This premium, which sets the benchmark for Asia, fell as buyers gained leverage, with limited spot deals and rising stocks pressuring producers during negotiations.
In the domestic market, Tense scrap prices in both Delhi and Chennai increased by INR 1,000/t as compared to last week. According to BigMint’s assessment, domestic Tense scrap stood at INR 197,000/t ex-Delhi-NCR and INR 198,000/t ex-Chennai.
Additionally, BigMint assessed ADC12 (OEM-approved) settlement prices for June 2025 at INR 228,000/t in Delhi and at INR 230,000/t in Chennai. For July 2025, expectations point to higher settlements, supported by strong scrap prices and a hike announced by a major automaker.
Indian copper scrap prices showed an uptrend this week, following trends prevailing on the London Metal Exchange (LME) platform. Copper armature scrap was assessed at INR 820,000/t ex-Delhi, up by INR 17,000/t w-o-w, while motors mix stood at $1,200/t, up by 4.34% w-o-w.
Copper inventories on the LME plunged 60% since mid-February 2025 to just around 96,000 t, the lowest since August 2023. Additionally, the prevailing market inversion (spot price exceeding futures) reached $345/t, the strongest backwardation since 2021. Fearing a potential 10% US tariff, traders shifted over 200,000 t of copper to US warehouses in April 2025. This drained stocks from Europe, Asia, and LME warehouses.
India’s copper import mix witnessed a significant shift in the first five months of 2025, with copper scrap imports rising 39.1% y-o-y to 142,756 t, while cathode imports dropped sharply by 38.3% to 84,015 t, according to data compiled by BigMint.
This reversal in trend shows a growing reliance on secondary copper sources as users move away from higher-cost primary materials.
In the 2025-26 Union Budget, the government removed the import duty on non-ferrous scrap, including copper. Recently, this made imported scrap significantly cheaper for Indian buyers, especially compared to copper cathodes, which still attract duties and other compliance costs.
Zinc
Imported zinc diecast from the Middle East was assessed at $2,150/t CFR Mundra, up by $50/t w-o-w, while domestic zinc ingots stood at INR 262,000/t, up by INR 3,000/t w-o-w.
Prices of zinc ingots from Hindustan Zinc Limited (HZL) stood at INR 271,900/t ex-Jodhpur, up by INR 5,900/t w-o-w.
Lead
Domestic primary lead ingot prices remained steady w-o-w at INR 201,000/t, while re-melted ingots were at INR 182,000/t w-o-w. Meanwhile, HZL lead ingots stood at INR 206,100/t ex-Jodhpur, up by INR 4,400/t w-o-w.
Other market updates
Hindalco to acquire AluChem for $125 million
Hindalco will buy US-based AluChem for $125 million to expand its speciality alumina capacity. The acquisition adds 60,000 t from three US plants and supports growth in EVs, semiconductors, and ceramics.
Vedanta’s Runaya to boost rare earth processing, aluminium recycling
Vedanta Group’s Runaya plans to invest INR 1,000-1,200 crore to expand rare earth processing and aluminium recycling. INR 300-500 crore has been set aside for rare earth and magnet-making facilities, key to clean energy and electronics, while Runaya also plans to double its aluminium recycling capacity to 200,000 tonnes annually, supporting clean energy and reducing import dependence.
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