Copper slides to a five-week low as LME stocks build; oil jump pulls the rupee back
Base metals fell across the board on Thursday as a sell-off in global stock markets hit risk appetite. LME copper dropped about 1.8% to its lowest in more than five weeks as fresh metal flowed into LME warehouses. Brent crude jumped above $112 a barrel after attacks in Saudi Arabia, which ended the rupee's eight-day winning run and makes imported metal and fuel costlier again.
Copper hits a five-week low as LME stocks climb
LME copper fell about 1.8% on Thursday to its weakest level since mid-September and is now clearly below last month's record high. LME copper stocks rose for a fourth straight day to about 2,72,950 tonnes, the highest since late July, as metal moved back from the US to LME warehouses in New Orleans and Baltimore. A sell-off in technology shares also hurt demand for industrial metals. Near-term supply is still fairly tight, and workers at Teck's Highland Valley Copper mine in Canada have authorised a strike from as early as Saturday.
For your business: Copper and brass scrap rates in India eased about 0.5–1.5% in the latest session. Buyers may find sellers more willing to negotiate; sellers should watch whether the Canada strike goes ahead, as that could support prices.
Aluminium slips again after a brief bounce
LME aluminium rose about 1% on Wednesday but gave it back on Thursday, falling about 1%. It remains roughly 9% below its early-September level. LME aluminium stocks are near 2,36,000 tonnes.
For your business: Aluminium ingot-grade and utensil scrap rates in India were steady this week. With LME soft, buyers have some room to bargain while sellers may see limited upside for now.
Nickel jumps on Indonesia cut hopes, zinc and tin fall
LME nickel jumped about 3% on Wednesday on signs that Chinese-owned producers in Indonesia may cut output, then eased about 1% on Thursday. Zinc fell about 2% and tin about 1.7% on Thursday. Lead dipped slightly even after an order to withdraw 46,800 tonnes from LME warehouses in Singapore; maintenance at some Chinese lead smelters has tightened supply there.
For your business: Zinc and lead scrap rates in India were steady this week. Stainless steel scrap firmed about 1–2% alongside the nickel bounce, but price deals on the day as nickel remains volatile.
Rupee ends eight-day rally as oil surges
The rupee fell 44 paise, or about 0.4%, to close at ₹94.82 per dollar on Thursday, ending an eight-session winning streak. Earlier in the day it touched its strongest level in over six weeks, helped by foreign inflows and the RBI's steps to support the currency, but rising oil prices and dollar demand from importers reversed the gains.
For your business: A weaker rupee raises the landed cost of imported scrap and metal. Importers may want to watch oil and the rupee closely before fixing payments.
Melting scrap steady in north India
Delhi rates for HMS 1 & 2, CR/HR coil scrap and cast iron scrap were unchanged in the latest sessions. Iron ore and steel futures in China dipped slightly on Thursday, giving no strong push either way.
For your business: HMS and CR/HR scrap sellers can expect stable demand for now. Rising fuel costs may add to transport charges, so check freight when comparing offers.
Brent jumps above $112 on Saudi attacks; US yields ease
Brent crude rose about 3% to around $112 a barrel, its highest since May, after deadly attacks on a Saudi Aramco oil field and an airport in Saudi Arabia's Eastern Province. The US 10-year bond yield eased to about 5.08% and the dollar softened slightly. The US Federal Reserve meets next week, and markets mostly expect rates to be held.
For your business: High oil keeps freight, smelting and import costs elevated, and India imports nearly 90% of its crude. A Fed hold would be neutral to mildly supportive for metals.
What to watch next
- Whether the strike at Teck's Highland Valley Copper mine in Canada begins this weekend
- Further metal arrivals into LME copper warehouses
- Middle East tensions and their effect on oil prices and the rupee
- US Federal Reserve decision next week
- Possible output cuts by nickel producers in Indonesia
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.
