Daily round-up: LME base metals prices show mixed trends; oil prices retreat

• Trafigura, Develop Global partner for copper-zinc supply
  
  
• Indian refiners strengthen crude oil supply security
  
  

Base metals on the London Metal Exchange (LME) traded mixed on 11 June 2026. Aluminium recorded the strongest gain among major non-ferrous metals, rising 1.04% d-o-d to $3,502/t, followed by zinc and nickel, which edged up 0.14% and 0.08% to $3,496/t and $17,693/t, respectively. In contrast, lead declined 0.89% to $1,945/t, while copper slipped marginally by 0.24% to $13,483/t amid continued profit-booking after recent gains.

On the inventory side, all major metals registered declines, highlighting ongoing supply tightness. Aluminium stocks fell 0.89% d-o-d to 324,825 t, while copper inventories dropped 0.83% to 369,575 t. Zinc stocks decreased 0.75% to 109,575 t, followed by lead and nickel inventories, which declined 0.27% and 0.05% to 307,225 t and 274,710 t, respectively. The continued drawdown in exchange inventories suggests underlying demand remains resilient despite recent market volatility.

Domestic market overview

India's non-ferrous scrap market softened on 11 June amid weaker domestic sentiment and lower benchmark metal prices. Aluminium tense scrap (loose), ex-Delhi, declined by INR 3,000/t, or 0.99% d-o-d, to INR 301,000/t, while ex-Chennai prices fell by INR 2,000/t, or 0.65% d-o-d, to INR 305,000/t.

Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, dropped by INR 13,000/t, or 1.03% d-o-d, to INR 1,247,000/t. The decline reflected cautious buying activity and profit-booking in the domestic market following recent gains in copper prices.

Oil prices retreat on hopes of diplomatic breakthrough

Global crude oil prices declined sharply on 12 June 2026 as optimism over a potential diplomatic breakthrough between the US and Iran eased immediate concerns over supply disruptions in the Middle East. Brent Crude fell 5.21% d-o-d to $88.76/bbl, while WTI crude dropped 4.99% to $86.23/bbl as traders unwound risk premiums built into the market during recent weeks. Natural gas prices also declined 3.15% to $3.08/MMBtu, reflecting weaker energy market sentiment.

Market sentiment remained cautious as the World Bank warned that prolonged Middle East instability could slow global economic growth to 2.5% in 2026 from 2.9% in 2025. While expectations of a gradual normalization of shipments through the Strait of Hormuz have eased immediate supply concerns, geopolitical risks continue to weigh on market confidence.

Meanwhile, Goldman Sachs cut its 2027 Brent crude forecast to $80/bbl on expectations of stronger supply growth and weaker demand. However, the bank still expects Brent to average around $90/bbl in Q4 2026, as ongoing risks to Middle Eastern supply routes could keep energy markets tight and support higher costs across industrial commodity supply chains.

Other updates

India boosts crude oil purchases amid disruptions

Indian refiners have secured sufficient crude oil supplies through at least August despite ongoing disruptions linked to the Iran conflict and shipping constraints in the Strait of Hormuz. To strengthen supply security, refiners have increased purchases from Abu Dhabi National Oil Co. (ADNOC) while also sourcing cargoes from Latin America, Africa, and Saudi Arabia.

State-run Hindustan Petroleum Corp. (HPCL) recently purchased 4 million barrels of Murban crude for August delivery and had earlier secured an additional 2 million barrels of crude from Brazil and West Africa for its 180,000-bpd Rajasthan refinery. Industry sources indicated that LPG supplies are covered until at least mid-July, while crude requirements remain adequately secured, easing concerns over near-term supply shortages.

Trafigura backs Australian copper-zinc expansion with $350 million deal

Global commodities trader Trafigura has strengthened its partnership with Australia's Develop Global through a $350 million financing facility and expanded offtake agreements covering its copper, zinc, lithium, and precious metals projects. The agreement will add 187,500 dry metric tonnes of concentrates from the Woodlawn copper-zinc-lead mine to existing supply arrangements, while supporting the development of the Sulphur Springs copper-zinc project and Pioneer Dome lithium project.

Sulphur Springs is expected to produce around 30,000 t/year of copper by 2028, while Pioneer Dome targets 70,000 t of lithium concentrate output at full capacity. The investment highlights continued industry confidence in long-term demand for critical minerals required for electrification and energy transition projects.

US emerges as world's largest oil exporter

The United States has become the world's largest oil exporter, overtaking traditional leaders Saudi Arabia and Russia amid ongoing disruptions to global energy trade. US crude and fuel exports reached approximately 10.5 million barrels per day (bpd) in May, surpassing Russia's 7 million bpd and Saudi Arabia's 5.9 million bpd.

The shift has been driven by strong shale production growth, strategic reserve releases, and supply disruptions affecting major exporters, including sanctions on Russia and reduced Middle Eastern exports linked to the Iran conflict.