- LME base metals gained, led by aluminium and zinc, while zinc inventories surged 12.9%.
- Indian aluminium prices fell amid weak demand, while copper remained firm and zinc prices strengthened.
LME base metals traded higher during the week, with aluminium and zinc recording the strongest gains of 1.6% each. Aluminium prices increased to $3,294/t, while zinc rose to $3,946/t. Copper prices increased 1.1% to $14,416/t, while lead edged up 0.1% to $1,908/t.
Meanwhile, LME inventories showed a mixed trend during the week. Zinc stocks recorded the steepest increase of 12.9% to 110,500 t, while aluminium inventories declined 0.3% to 245,975 t. Copper stocks decreased 1.7% to 234,650 t, while lead inventories fell 2.9% to 396,825 t.
Aluminium
India’s imported aluminium scrap prices increased w-o-w, supported by firmer LME aluminium prices and varying availability across grades.
According to BigMint’s latest assessment, UK-origin Zorba 95-5 scrap prices increased by $55/t (2.0%) w-o-w to $2,785/t.
Domestic aluminium prices in India declined w-o-w despite a rise in LME aluminium prices. The domestic physical market remained under pressure amid subdued demand and cautious buying. According to BigMint’s assessment, P1020 aluminium ingot prices in Delhi NCR decreased by INR 3,000/t (0.8%) w-o-w to INR 351,000/t.
However, domestic demand remained subdued, with buyers largely limiting purchases to immediate requirements and showing limited interest in inventory building. The ongoing monsoon season continued to weigh on downstream activity, restricting the pass-through of higher international aluminium prices into the domestic physical market.
Global primary aluminium production stood at 42.424 mnt in 7MCY’26, down 0.8% y-o-y from 42.758 mnt in the corresponding period last year, according to International Aluminium Institute (IAI) data.
Domestic aluminium prices are expected to remain range-bound in the near term, as subdued downstream demand is likely to limit the upside. However, firm LME prices, lower exchange inventories and potential changes in global scrap trade flows could provide some support to the market.
Copper
India’s copper scrap market remained broadly stable during the week, supported by firm global copper prices amid concerns over mine supply and tightening availability, while India’s renewed discussions with Zambia on potential investments in copper and other critical minerals are aimed at strengthening long-term raw-material supplies.
According to BigMint’s assessment, copper armature scrap, ex-Delhi, increased marginally by INR 1,000/t w-o-w to INR 1,306,000/t (INR 1,306/kg). Market participants reported limited price movement during the assessment period, with buying interest remaining steady.
Meanwhile, copper cathode prices ex-Mumbai declined by INR 18,000/t (1.3%) w-o-w to INR 1,374,000/t. The decline came despite stronger international copper prices, reflecting softer domestic physical market conditions.
Domestic copper prices are likely to remain supported by firm international prices and constrained scrap availability. However, elevated price levels and weaker downstream buying could limit further gains in the near term.
Zinc & lead
India’s zinc dross and zinc oxide prices increased w-o-w, supported by higher primary zinc prices and firm international market conditions.
According to BigMint’s assessment, zinc dross prices ex-Delhi increased by INR 9,100/t (2.7%) w-o-w to INR 349,300/t. Zinc oxide (99% Zn) prices increased by INR 5,200/t (1.6%) w-o-w to INR 330,000/t.
Meanwhile, Hindustan Zinc Ltd (HZL) raised its benchmark Special High Grade (SHG) zinc ingot price by INR 5,500/t to INR 423,900/t on 2 September, from INR 418,400/t previously, reflecting sustained strength in LME cash prices and tight physical availability. In contrast, HZL kept its benchmark lead ingot (99.9%) price unchanged at INR 210,900/t, mirroring sideways LME trading and stable procurement from domestic battery manufacturers.
The increase was supported by firm international zinc prices, with LME zinc rising 1.6% w-o-w to $3,946/t. Zinc prices have remained elevated amid concerns over mine supply and tightness in the Western market. Recent market developments point to a significant supply squeeze, with global mined zinc production falling 2.6% in H1 2026 and disruptions at several major mines adding to supply concerns.
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