Copper hits a 2½-month low as tech sell-off and US election jitters hit metals; tin slides further
Base metals fell across the board on Tuesday as a fresh sell-off in technology shares, doubts over AI-linked demand and caution ahead of the US midterm election results pushed investors out of risky assets. LME copper dropped about 2% to its lowest level since mid-August, and copper scrap rates in India eased about 1%. Tin fell more than 3%, while oil bounced after US strikes on Iran's Qeshm Island and the rupee stayed near 94.7 per dollar.
Copper falls to its lowest since mid-August
LME copper fell about 2% on Tuesday and is now nearly 4% below its level a week ago, touching its lowest point since 19 August. LME copper stocks rose to a four-month high of about 3,09,650 tonnes after fresh deliveries into US warehouses. A sharp fall in the Chinese yuan, after China's central bank raised the foreign-currency reserve requirement for banks, also made dollar-priced metal costlier for Chinese buyers. Losses were limited by very tight physical supply in China, where the import premium for copper stayed near its highest in more than a decade.
For your business: Bright and mixed copper scrap rates in India eased about 1% in the latest session. Buyers may find softer offers this week, but tight supply in China could stop a deep fall.
Aluminium slips but holds a narrow range
LME aluminium fell about 0.4% in the latest settlement, a smaller drop than other metals. It is still below its September levels. LME aluminium stocks are steady at about 2,29,000 tonnes.
For your business: Aluminium ingot-grade and utensil scrap rates in India were unchanged. Trade should stay steady unless the wider metals sell-off deepens.
Tin drops to a 6½-month low; zinc gives back gains
Tin fell more than 3% and touched its lowest level since mid-April, as the sell-off in chip-maker shares hit demand hopes for electronics solder; it is now about 11% below late September. Zinc fell close to 2%, erasing much of its late-October rise. Nickel and lead each slipped less than half a percent.
For your business: Zinc, lead and brass scrap rates in India were steady, and stainless steel scrap eased slightly. Tin-bearing and electronic scrap may see weaker bids while the tech sell-off lasts.
Rupee steady near 94.7 per dollar
The rupee gained 13 paise on Tuesday to settle near ₹94.71 per dollar, helped by a strong rally in Indian shares and foreign buying, though higher oil prices capped the gain. The dollar index eased about 0.2% early on Wednesday as US election results came in. The rupee remains close to its weakest levels of the year.
For your business: A stable rupee keeps imported scrap and metal costs steady in rupee terms. Importers may still want to watch oil and the US election outcome before fixing payments.
Ferrous scrap flat; import demand stays quiet
Rates for HMS 1 & 2, CR/HR coil scrap and cast iron scrap were unchanged in the latest sessions in Delhi and Mandi Gobindgarh. Demand for imported ferrous scrap in India remains subdued, with mills preferring cheaper grades and domestic material after the festive lull.
For your business: Sellers of melting scrap can expect stable but slow demand. Any pick-up in construction after the festive season would be the first sign of firmer rates.
Oil rebounds on Iran strikes; US yields stay high
Brent crude rose about 2% to near $106 a barrel on Tuesday after US strikes on Iran's Qeshm Island near the Strait of Hormuz, recovering part of Monday's drop of more than 7%. Iranian officials said peace talks are still far from a deal. The US 10-year Treasury yield eased slightly to about 4.92% early on Wednesday as markets awaited the full midterm results.
For your business: High and volatile oil keeps freight and smelting costs elevated. High US interest rates tend to support the dollar and weigh on metal prices.
What to watch next
- Final US midterm results and their effect on the dollar and metals
- US-Iran talks, shipping in the Strait of Hormuz and oil prices
- Copper stocks in LME and Chinese warehouses
- China's yuan after the central bank's reserve move
- Tech share sell-off and its effect on tin and copper demand
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.
