LME base metals prices face pressure; Strait of Hormuz concerns support crude prices

• US aluminium producers warn elevated prices may curb demand
  
  
• India probes Malaysian aluminium wire imports ahead of duty expiry
  
  

Base metals on the London Metal Exchange (LME) traded largely lower on 27 April 2026, with broad weakness seen across aluminium, copper, zinc, and lead, while nickel was the only major gainer, up 0.43% to $19,097/t. In contrast, zinc recorded the sharpest decline of 2.15% to $3,398/t, followed by copper, which fell 0.73% to $13,213/t. Aluminium slipped 0.36% to $3,578/t, while lead edged lower by 0.13% to $1,960/t. On MCX, zinc declined 1.23%, while SHFE also reflected a weaker tone across most metals.

On the inventory front, LME stock movements remained on the downside, indicating continued tightening in near-term supply conditions. Zinc inventories registered the steepest fall of 1.41% to 102,825 t, followed by copper, which declined 0.86% to 392,575 t. Aluminium stocks dropped 0.67% to 376,275 t, while lead inventories eased 0.35% to 270,025 t. Nickel stocks remained unchanged at 277,548 t, reflecting balanced availability amid broader drawdowns across major base metals.

Domestic market overview

India's non-ferrous scrap prices remained firm d-o-d. Aluminium tense scrap (loose), ex-Delhi, increased by INR 3,000/t or 1% to INR 295,000/t from INR 292,000/t in the previous session. Meanwhile, ex-Chennai prices also rose by INR 1,500/t or 0.5% to INR 308,500/t from INR 307,000/t earlier.

In the copper segment, sentiment improved slightly. Copper armature scrap (Cu 99%), ex-Delhi, increased by INR 8,000/t or 0.7% to INR 1,142,000/t from INR 1,134,000/t previously, indicating better buying interest in the domestic market.

Other market updates

US aluminium producers warn elevated prices may curb demand

US aluminium producers have expressed concerns that persistently high aluminium prices could weaken downstream demand and accelerate material substitution in key end-use sectors. The Aluminum Association highlighted risks of declining aluminium consumption as buyers seek lower-cost alternatives.

Industry participants indicated that some automakers are considering replacing aluminium with steel in 2028 vehicle models, while composite materials also remain a competitive threat. Despite near-term demand concerns, producers remain positive regarding the long-term outlook for the aluminium sector.

Oil prices rise as US-Iran stand-off prolongs supply concerns

Oil prices rose around 1% on 28 April 2026, extending previous gains as stalled efforts to end the US-Iran conflict heightened concerns over supply disruptions through the Strait of Hormuz. Brent crude increased to $102.64/bbl, while WTI crude climbed to $97.64/bbl.

The ongoing disruption in the Strait of Hormuz, a key route for nearly 20% of global oil and gas flows, continued to support bullish sentiment in energy markets. Traders remained focused on geopolitical developments and physical supply constraints rather than broader demand signals.

Overall, crude prices are likely to remain elevated in the near term, with market direction dependent on progress in diplomatic talks and restoration of regional shipping flows

India launches probe into aluminium wire imports from Malaysia

India has initiated an investigation into certain aluminium wire products imported from Malaysia ahead of the expiry of existing countervailing duties in September 2026. The move follows a sunset review request to assess whether the duties should be extended.

The application was filed by domestic producers, including Hindalco Industries, Vedanta Limited, and Bharat Aluminium Company, citing the need to review continued injury risks from subsidised imports.

El Nino threat may intensify stress on global energy markets

Global energy markets could face renewed volatility as forecasts point to a strong El Nino pattern from next month, adding pressure to already disrupted fuel flows linked to Middle East tensions. Higher temperatures and shifting rainfall patterns may alter coal, gas, and power demand across key consuming regions.

Asia may witness stronger cooling demand, supporting coal consumption in countries such as India and China, while reduced hydro output in parts of Africa and Latin America could lift gas demand. Europe may also see tighter power markets during summer heatwaves.

Overall, El Nino-related weather risks, combined with existing geopolitical disruptions, are expected to keep global energy markets volatile in the near term.

China's Huayou reports first lithium salt exports from Zimbabwe

China's Zhejiang Huayou Cobalt has reported its first exports of lithium salt from Zimbabwe, marking a key step in the country's push for value-added mineral processing and reduced raw concentrate shipments. The material was produced at Huayou's Arcadia lithium project, one of Zimbabwe's largest lithium assets.

The development follows Zimbabwe's policy drive to encourage in-country beneficiation, with exports increasingly shifting from spodumene concentrate toward processed lithium products. Huayou had previously commissioned a lithium sulphate plant at the site to strengthen downstream processing capacity.

Overall, the first lithium salt shipment highlights Zimbabwe's growing role in the global battery raw materials supply chain, while supporting China-linked efforts to secure processed lithium feedstock.