Daily round-up: Base metals supported by tight stocks; China caps oil demand growth

Vedanta targets 60 LTPA aluminium production capacity

China cuts crude imports by 3 million bpd

Base metals on the London Metal Exchange (LME) traded mostly higher on 22 June 2026, with zinc leading gains among major non-ferrous metals. Zinc rose 1.46% d-o-d to $3,609/t, followed by nickel, which increased 0.99% to $17,754/t. Lead and copper also advanced by 0.51% and 0.40% to $1,964/t and $13,649/t, respectively. Aluminium was the only decliner, falling 0.97% to $3,364/t amid continued pressure from expectations of improving global supply.

On the inventory side, trends remained mixed. Copper inventories recorded the sharpest decline, falling 1.00% d-o-d to 352,150 t, followed by lead and aluminium stocks, which dropped 0.45% and 0.07% to 301,950 t and 315,300 t, respectively. Nickel inventories were largely unchanged, slipping 0.03% to 276,216 t. In contrast, zinc stocks increased 2.38% to 123,775 t. Continued drawdowns in copper inventories suggest underlying physical demand remains supportive despite recent price volatility.

Domestic market overview

India's non-ferrous scrap market remained mixed on 22 June amid cautious buying activity and fluctuating global metal prices. Aluminium tense scrap (loose), ex-Delhi, declined by INR 2,500/t, or 0.86% d-o-d, to INR 288,000/t, while ex-Chennai prices fell by INR 2,000/t, or 0.68%, to INR 293,000/t.

Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, increased by INR 5,000/t, or 0.41% d-o-d, to INR 1,235,000/t, supported by firm copper fundamentals and continued inventory declines on the LME.

Oil prices slide as China cushions supply shock

Global crude oil prices declined on 23 June 2026, with Brent crude falling 1.85% d-o-d to $77.64/bbl and WTI crude dropping 2.27% to $73.69/bbl, marking the first time WTI has traded below $75/bbl since early March. Natural gas prices also eased 0.79% to $3.25/MMBtu, reflecting improving confidence in global energy supply conditions.

Market sentiment remained focused on the reopening of the Strait of Hormuz and China's role in absorbing the impact of the Middle East supply disruption. China has reduced crude imports by nearly 3 million bpd, drawn on reserves exceeding 1 billion barrels, and accelerated EV adoption, helping offset demand pressure on global markets.

Meanwhile, shipping activity through the Strait of Hormuz has improved, with vessel transits recovering to an average of 23 ships per day over the weekend from single-digit levels during the peak of the conflict. However, traffic remains well below the pre-war average of 130 vessels per day, highlighting that supply chain normalization is still ongoing.

Other updates

Hormuz uncertainty keeps aluminium supply chain on edge

The aluminium industry remains exposed to uncertainty around the Strait of Hormuz, a key Gulf trade route that handles around 5.5 million tonnes of primary aluminium annually. Shipping activity remains well below normal levels, with only 12 vessels transiting the strait on 21 June, compared with the pre-conflict average of 100-120 tankers per day, while nearly 500 vessels, including 220 oil tankers, remain stranded in the Persian Gulf.

Although LME aluminium prices have remained relatively stable near $3,400/t, producers continue to face concerns over raw material availability and energy security, as aluminium production is highly dependent on reliable oil and natural gas supplies.

Vedanta Aluminium targets 60 lakh tpa capacity

Vedanta Aluminium Metal Ltd (VAML), which recently began trading as an independent entity on the NSE and BSE following Vedanta Group's demerger, has announced plans to double its aluminium production capacity from 30 lakh tonnes per annum (LTPA) to 60 LTPA. The company aims to capitalize on growing demand from infrastructure, automotive, electrification, aerospace, and advanced manufacturing sectors.

Backed by major assets including the Lanjigarh alumina refinery, Jharsuguda aluminium smelter, and BALCO in Chhattisgarh, along with captive bauxite, coal resources, and 4.5 GW of captive power capacity, Vedanta expects to strengthen its position as one of the world's lowest-cost aluminium producers while expanding its presence across more than 60 countries.

Copper gains as easing inflation fears support sentiment

Copper prices moved higher after signs of progress in US-Iran peace talks eased concerns over energy-driven inflation and improved the outlook for global manufacturing activity. LME copper rose to $13,650/t, while inventories in the exchange network fell to a three-month low, providing additional support to prices. The prospect of improved traffic through the Strait of Hormuz and the resumption of Middle Eastern oil flows helped reduce fears of prolonged energy market disruption, which had weighed on industrial metals demand.