Aluminium jumps on tight LME stocks, copper steadies on AI hopes; rupee at strongest level since April
LME aluminium rose about 2.8% on Wednesday as very low LME stocks squeezed nearby supply, and Indian aluminium scrap rates firmed about 2.5%. Copper recovered part of Tuesday's fall as worries about AI spending eased, but the official cash price still ended about 0.8% lower and Indian copper scrap eased about 1%. The rupee strengthened to its best level since April on lower oil and strong foreign inflows. Indian steel and ferrous scrap markets stayed quiet after Diwali.
Tight LME stocks lift aluminium off a three-week low
LME aluminium cash rose about 2.8% on Wednesday, bouncing from Tuesday's three-week low. LME-registered aluminium stocks have fallen about half since late February and are near their lowest since March 2025, and almost all of what is left is Russian metal that many Western buyers avoid. This pushed the premium for nearby metal over the three-month contract to a five-month high. Prices are still about 20% below the four-year high of June, and a surplus is widely expected next year as Middle East and Indonesian supply grows.
For your business: Ingot-grade and utensil aluminium scrap rates in India rose about 2.5% in the latest update. Sellers may see firmer bids in the near term, but the longer-term outlook is softer, so buyers need not chase prices.
Copper recovers part of its losses as AI worries fade
LME copper closed about 0.6% higher on Wednesday on short covering after falling 1.6% on Tuesday, helped by strong results from AI infrastructure firms; the official cash price still ended about 0.8% lower and is about 2.3% down on the week. In China, the import premium stayed at a record for a third day as local smelter output fell, though delayed cargoes are now arriving and high prices keep factory buying weak. Sumitomo Metal Mining cut its refined copper output forecast for this financial year by 46,000 tonnes due to a smelter problem in Japan. LME copper stocks are about 3,19,700 tonnes.
For your business: Bright and mixed copper scrap rates in India eased about 1.1% in the latest update and are about 3% lower than a week ago; brass scrap also slipped about 1.1%. With demand still slow, buyers can stay selective.
Small gains for zinc, nickel and tin; lead flat
LME cash prices rose about 0.7% for zinc, 0.4% for nickel and 1.8% for tin on Wednesday, while lead was flat. Tin is still about 13% below its level at the start of October. Nickel remains supported by talk that Indonesia will tighten its mining quota for 2027.
For your business: Zinc scrap in India rose about 0.4%, while lead scrap and lead-acid battery scrap eased about 0.3%. Stainless steel 304 and 202 scrap rates were almost unchanged.
Rupee firms to its strongest level since April
The rupee closed at about ₹93.69 per dollar on Wednesday, about 0.25% stronger than Monday's close and over 3% above its record low in May. Lower crude oil prices and about 6.4 billion dollars of foreign buying of Indian shares so far in November have supported it. Some banks still expect weakness next year because of the RBI's forward dollar commitments and possible further US rate hikes.
For your business: A stronger rupee slightly lowers the rupee cost of imported metal and scrap, which can soften local rates linked to LME prices.
Brent steady near a two-month low as US-Iran talks stall
Brent crude briefly dipped below $90 a barrel on Tuesday, its lowest in almost two months, and was near $92 on Thursday. Middle East crude flows are recovering, with Saudi output up sharply in October, but the Strait of Hormuz is still not open to normal shipping and US-Iran talks remain stuck. Drone attacks have also disrupted a large share of Russia's refining.
For your business: Lower oil helps keep fuel and power costs in check for recyclers. Freight and insurance on Gulf routes for imported scrap are likely to stay high until Hormuz shipping normalises.
Steel and ferrous scrap markets quiet after Diwali
Indian steel markets moved sideways as many traders were still on Diwali and Bhai Dooj holidays, and Alang melting scrap was unchanged. HMS 1 & 2, CR/HR coil and cast iron scrap rates in Delhi were unchanged in the latest update. Trading is expected to pick up from next week.
For your business: Melting scrap sellers should expect thin buying this week. The first signs of direction will come when mills and construction buyers return after the holidays.
What to watch next
- India's October retail inflation data due on 12 November, expected above 6%
- US Federal Reserve comments ahead of the December meeting and the dollar
- China copper import premiums and arrival of delayed cargoes
- LME aluminium stocks and nearby supply squeeze
- Post-Diwali restart of Indian steel and scrap buying
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.
