Daily round-up: LME base metals trade mixed; aluminium bucks broader weakness

• Nickel breaches $19,000/t as supply concerns drive fresh gains
  
  
• Escalating Middle East tensions continue to influence commodity prices
  
  

Base metals prices on the London Metal Exchange (LME) traded mostly lower on 29 May 2026. Copper recorded the steepest decline, falling 0.48% d-o-d to $13,636/t, followed by zinc, which slipped 0.31% to $3,540/t. Nickel and lead also edged lower by 0.20% and 0.10% to $19,062/t and $2,016/t, respectively. In contrast, aluminium was the only gainer, rising 0.19% to $3,667/t, supported by continued strength in the aluminium market.

On the inventory side, copper stocks registered the sharpest decline, falling 0.57% d-o-d to 385,100 t, followed by aluminium inventories, which eased 0.37% to 338,000 t. Zinc stocks also edged down by 0.07% to 108,325 t, while nickel and lead inventories remained unchanged at 278,064 t and 314,000 t, respectively, indicating mixed trends across LME warehouses.

Domestic market overview

India's non-ferrous scrap market remained firm d-o-d. Aluminium tense scrap (loose), ex-Chennai, increased by INR 500/t or 0.2% d-o-d to INR 311,500/t from INR 311,000/t, while aluminium taint tabor scrap (loose), ex-Delhi, remained unchanged at INR 260,000/t, indicating stable market conditions amid balanced demand-supply dynamics.

Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, increased by INR 1,000/t or 0.1% d-o-d to INR 1,240,000/t from INR 1,239,000/t, tracking firm copper market trends and steady spot demand.

Other market updates

LME nickel rises above $19,000/t, reaches two-week high

LME nickel futures climbed above the $19,000/t mark on 29 May 2026, closing at $19,101/t, up by $158/t d-o-d, while touching an intraday high of $19,130/t, its strongest level since 14 May. The rally was supported by a weaker US dollar, improving sentiment across the base metals complex, and continued concerns over disruptions in raw material mining supplies.

Meanwhile, LME nickel inventories remained unchanged at 278,064 t, while market participants continued to monitor supply-side developments and raw material availability. Despite recent volatility, nickel prices have gained around 14.7% year-to-date, with sentiment remaining supported by ongoing supply concerns and stronger pricing momentum.

Middle East tensions, bauxite curbs support aluminium prices

Global aluminium markets remained firm as escalating Middle East tensions and concerns over potential supply-chain disruptions boosted market sentiment. The widening premium between LME and SHFE aluminium prices reflected stronger overseas demand and tightening supply conditions.

Meanwhile, Guinea's proposed bauxite export restrictions and stricter mining controls in China raised concerns over raw material availability, supporting alumina prices and strengthening the overall aluminium market outlook.

Oil prices jump over 2% as Israel expands Lebanon offensive

Global oil prices rose more than 2% on 1 June 2026 after Israel ordered troops to move deeper into southern Lebanon in its conflict with the Iran-backed Hezbollah group, reigniting concerns over potential disruptions to Middle East energy supplies. Brent Crude futures increased by around 2.3% to $93.19/bbl, while US WTI crude gained 2.7% to $89.73/bbl during early trading.

Market sentiment remained supported by fears that escalating regional tensions could further impact trade flows and energy shipments linked to the Strait of Hormuz, a critical global oil transit route. Despite ongoing discussions around potential ceasefire arrangements, supply-side risks continued to dominate market sentiment, supporting crude prices at elevated levels.