Copper firm on China restocking and Chile strike; weak rupee keeps Indian scrap rates high
Copper ended the week about 2% higher, within roughly 1% of its September record, as Chinese buyers restocked after the National Day holiday and a strike hit a large Chilean mine. Other base metals had a choppy week after a sharp risk-off sell-off on Thursday. In India, the rupee sits near its record low against the dollar, which lifts the rupee price of every metal and keeps domestic scrap rates firm.
China restocking and a Chilean mine strike lift copper
LME copper closed the week about 2% higher, close to its September record. Chinese import demand is at a four-year high as buyers return from the holiday, and a strike at the Centinela mine in Chile entered its first week, with unions warning output could fall from November. Heavy shipments into the US ahead of possible tariffs are also tightening supply elsewhere.
For your business: Copper scrap rates in India are near their highs. Sellers holding copper may benefit from staying close to the market; buyers should expect firm offers while the strike lasts.
Risk-off sell-off on Thursday, partial recovery on Friday
Tin fell about 5% and lead, zinc, nickel and aluminium each lost at least 1% on Thursday as oil jumped and equities fell. Prices steadied on Friday. Aluminium is trading below its levels earlier in the year.
For your business: Aluminium and zinc scrap rates have softened slightly. Short-term swings are large, so lock prices on the day of the deal rather than relying on last week’s quote.
Brent above $100 on Middle East shipping disruption
Brent crude traded around $104 a barrel as disruption to shipping in the Gulf continued, and freight rates remain high. Higher energy costs raise the cost of smelting aluminium and zinc and of moving scrap by sea and road.
For your business: Expect higher freight on imported scrap and longer transit times. Factor transport costs into landed-price comparisons.
Rupee near its record low around ₹96.8 per dollar
The rupee ended the week near ₹96.8 per dollar, close to its all-time low of ₹96.96, despite the RBI stepping in and raising interest rates for the first time in nearly four years. A strong dollar, high oil prices and foreign outflows are weighing on the currency.
For your business: A weaker rupee makes imported metal and scrap dearer in rupee terms, which supports domestic scrap prices even when LME prices are flat.
Ferrous scrap and ingot prices edged up in October
Melting scrap and MS ingot prices in India have risen since 1 October, helped by firm steel demand, while power cuts in Chhattisgarh have reduced output at some secondary mills.
For your business: HMS and end-cutting sellers have some pricing power this month. Mills facing power cuts may buy in smaller lots.
High US yields and a strong dollar are a headwind
The US 10-year bond yield is around 5.2% and the dollar index is near a one-year high. A strong dollar and high rates usually weigh on metal prices because they raise the cost of holding metal and of buying it in other currencies.
For your business: If the dollar keeps strengthening, global metal prices may cool even as the rupee price stays high.
What to watch next
- Progress of strike talks at the Centinela copper mine in Chile
- China’s September trade and factory data, a key signal for copper and aluminium demand
- Oil prices and Gulf shipping routes, which drive energy and freight costs
- Whether the rupee weakens past ₹97 per dollar
- Any US decision on tariffs for copper and other metals
Prices now
LME prices are shown with a 2-day delay. Live LME and India rates are free for registered members.
This update is general market information, not investment or trading advice. Prices are indicative.
