LME base metals prices climb higher; Chile supply tightness keeps copper fundamentals firm

• LME stocks continue to decline, zinc records sharpest drop
  
  
• Oil eases on reports of potential US-Iran ceasefire extension
  
  

Base metals prices on the London Metal Exchange (LME) climbed higher on 28 May 2026. Copper led the uptrend, rising 1.26% d-o-d to $13,702/t, followed by zinc, which increased 1.08% to $3,551/t. Nickel gained 0.83% to $19,101/t, while aluminium and lead rose 0.65% and 0.60% to $3,660/t and $2,018/t, respectively, reflecting improved sentiment across the broader metals complex.

LME inventory levels, however, continued to decline across the base metals segment. Zinc stocks recorded the sharpest drop of 1.41% d-o-d to 108,400 t, followed by copper inventories, which fell 0.57% to 387,300 t. Lead, nickel, and aluminium stocks also decreased by 0.47%, 0.29%, and 0.03% to 284,350 t, 278,064 t, and 339,250 t, respectively, indicating continued drawdowns across exchange-monitored warehouses.

Domestic market overview

India's non-ferrous scrap market was mixed d-o-d. Aluminium tense scrap (loose), ex-Delhi, remained unchanged at INR 304,000/t, while ex-Chennai prices declined by INR 500/t or 0.2% d-o-d to INR 311,000/t from INR 311,500/t, indicating slightly softer regional market activity.

Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, decreased by INR 1,000/t or 0.1% d-o-d to INR 1,239,000/t from INR 1,240,000/t, tracking weaker buying interest in the spot market.

Other market updates

LME nickel prices remained supported above the $18,900/t mark on 28 May despite a brief pullback during the session. Nickel closed at $18,943/t after touching an intraday high of around $19,170/t, reflecting resilient buying interest and supportive market fundamentals.

LME nickel prices remained firm above the $18,900/t mark on 28 May despite a brief correction, supported by resilient market fundamentals and continued buying interest. Market participants noted that prices recovered quickly after the dip, indicating underlying strength in the nickel market.

The sustained price support comes amid ongoing supply-demand uncertainty and improving sentiment across the broader base metals complex, with traders closely monitoring developments in stainless steel demand and battery-sector consumption.

Oil eases on reports of potential US-Iran ceasefire extension

Oil prices edged lower on reports that the US and Iran are nearing a potential agreement to extend their ceasefire, raising expectations of gradual normalisation in oil flows through the Strait of Hormuz. Brent Crude futures declined to around $92.4/bbl, while US WTI crude slipped to nearly $88.3/bbl amid easing immediate supply concerns.

Market participants, however, remained cautious as unresolved issues in the negotiations continue to cloud the outlook. Despite optimism around a possible deal, traffic through the Strait of Hormuz remains well below pre-conflict levels, keeping broader energy market sentiment sensitive to further geopolitical developments.

Chile supply disruptions support copper prices amid refining cutbacks

Copper prices moved higher as ongoing supply disruptions in Chile forced several refiners to reduce operating rates, tightening availability across the global copper value chain. Market participants indicated that lower concentrate availability and pressure on treatment and refining charges (TC/RCs) continue to weigh on smelting economics and support copper market sentiment.

The market also remains supported by concerns over tightening mine supply, while demand from electrification, power infrastructure and AI-linked sectors continues to strengthen the long-term copper outlook. Analysts expect supply-side constraints to remain a key driver for copper prices in the near term.