LME base metals gain momentum; supply tightening offsets macro uncertainty

• US crude holds steady amid easing Gulf tensions
  
  
• Copper gains strategic appeal on AI-driven demand outlook
  
  

Base metals on the London Metal Exchange (LME) showed a firm trend on 6 May 2026, with gains recorded across all major commodities amid improving market sentiment. Aluminium emerged as the top gainer, rising 1.92% to $3,590/t, followed by nickel, which increased 1.43% to $19,642/t. Lead gained 1.21% to $1,973/t, while copper advanced 1.06% to $13,135/t and zinc climbed 0.76% to $3,371/t, indicating broad-based strength across the complex.

On the inventory side, LME stocks showed a declining trend across all major metals, pointing to continued offtake and tightening exchange availability. Zinc inventories recorded the sharpest drop, dropping 2.43% to 96,250 t, followed by aluminium, which declined 0.63% to 364,725 t. Lead stocks slipped 0.40% to 268,500 t, while nickel inventories fell 0.36% to 276,396 t and copper stocks edged lower by 0.26% to 398,675 t, suggesting selective tightening in near-term supply conditions.

Domestic market overview

India's non-ferrous scrap prices showed a mixed trend d-o-d, with stability in aluminium and a decline in copper. In the aluminium segment, tense scrap (loose), ex-Delhi, remained unchanged at INR 295,000/t, while ex-Chennai prices also held stable at INR 308,500/t, reflecting a flat trend across key regional markets.

In the copper segment, copper armature scrap (Cu 99%), ex-Delhi, declined to INR 1,142,000/t from INR 1,144,000/t, marking a drop of INR 2,000/t d-o-d, indicating weaker spot sentiment and cautious buying activity in the domestic market.

Other updates

Brazil's MRN secures licence to extend bauxite mining

Brazils Minerao Rio do Norte (MRN) has secured an installation licence from IBAMA for its Novas Minas bauxite expansion project, enabling operations in Par state to continue until 2041.

MRN plans to invest around R$9 billion (~$1.8 billion) between 2027 and 2041 to develop five new mining sites, targeting annual bauxite production of around 12.5 million tonnes, in line with current output levels.

The project, backed by Glencore, South32, and Rio Tinto, is aimed at securing long-term bauxite supply from one of Brazil's key aluminium raw material hubs amid sustained global demand for aluminium feedstock.

Oil prices steady as ceasefire holds, US crude inventories decline

Crude oil prices remained largely stable on 6 May, as markets balanced easing geopolitical concerns in the Middle East against tightening US supply fundamentals. Brent crude traded near $108/bbl, while WTI hovered around $100/bbl, following recent volatility linked to Gulf tensions.

Market sentiment improved after the US-Iran ceasefire continued to hold, reducing immediate risks to shipping flows through the Strait of Hormuz, although traders remained cautious amid ongoing regional uncertainty.

Meanwhile, US crude inventories declined for the third consecutive week, with stocks falling by around 8.1 million barrels, alongside draws in gasoline and distillate inventories, indicating tighter near-term supply conditions.

BHP sees rising investor interest in copper

BHP said a broader base of global investors is increasingly seeking copper exposure, as accelerating investment in AI infrastructure and electrification strengthens long-term demand outlook for the metal.

According to BHP CFO Vandita Pant, investors are viewing copper as a critical bottleneck commodity linked to AI and energy transition themes, driving renewed interest in diversified mining exposure. Copper recently surpassed iron ore as the companys largest earnings contributor, supported by strong pricing and structural demand growth.

The development highlights growing market focus on upstream resource security, with copper increasingly positioned as a strategic metal amid expanding global AI and electrification investment cycles.

Trump pauses Hormuz shipping plan amid push for Iran deal

US President Donald Trump has temporarily paused "Project Freedom", a US-led initiative aimed at guiding stranded commercial ships through the Strait of Hormuz, as Washington explores the possibility of a broader agreement with Iran.

The move comes amid signs of renewed diplomatic engagement, with Trump citing progress toward a "complete and final agreement" with Iran, although the US naval blockade on Iranian ports remains in force.

The decision reflects efforts to ease tensions in the Gulf after recent disruptions to shipping flows and heightened risks to global energy supply chains linked to the Hormuz crisis.