LME base metals prices reveal mixed picture; selective support offset by global headwinds

• Aluminium gains amid selective inventory tightening
  
  
• Oil prices ease after US move to support Hormuz shipping
  
  

Base metals on the London Metal Exchange (LME) showed a mixed trend on 1 May 2026, with performance varying across commodities. Aluminium emerged as the key gainer, rising 1.38% to $3,522/t, while copper remained largely stable, inching up 0.07% to $12,997/t. In contrast, nickel declined 0.53% to $19,365/t, zinc fell 0.49% to $3,345/t, and lead slipped 0.33% to $1,949/t, indicating mild downside pressure across the complex.

On the inventory side, LME stocks again presented a mixed picture. Copper inventories increased by 0.71% to 399,725 t, while lead stocks rose 0.33% to 269,575 t, suggesting some easing in supply tightness. In contrast, zinc inventories dropped sharply by 2.45% to 98,650 t, followed by aluminium, which declined 0.31% to 367,050 t, and nickel fell 0.15% to 277,398 t, pointing to selective tightening across certain metals.

Domestic market overview

India's non-ferrous scrap prices showed a mixed trend d-o-d: stability prevailed in the aluminium segment while copper saw an uptick. In the aluminium segment, aluminium 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 regional markets.

In the copper segment, copper armature scrap (Cu 99%), ex-Delhi, increased to INR 1,145,000/t from INR 1,138,000/t, a rise of INR 7,000/t d-o-d, indicating improved buying interest and firmer spot sentiment in the domestic market.

Other updates

South Korea ramps up SME R&D to cut carbon exposure

South Korea's Ministry of SMEs and Startups, along with TIPA, has launched the "2026 Carbon Reduction R&D for Core Export Items" initiative, inviting applications from 13-27 May, aimed at strengthening SMEs' compliance with global carbon regulations.

The programme focuses on developing and commercialising low-carbon technologies for carbon-intensive exports such as aluminium and steel, in response to the EU's Carbon Border Adjustment Mechanism (CBAM) and tightening global emission norms.

Key R&D areas include fuel substitution, process efficiency improvement, and recycling/reuse of materials, with support for real-world deployment and validation, helping SMEs maintain export competitiveness amid rising carbon compliance costs.

Oil prices ease as US signals support for Hormuz shipping

Crude oil prices declined on 4 May 2026 after US President Donald Trump announced plans to assist and escort ships stranded in the Strait of Hormuz, easing immediate supply disruption concerns.

Brent crude fell to around $108.11/bbl (-0.1%), while WTI crude dropped to $101.50/bbl (-0.4%), although prices remained elevated above $100/bbl amid ongoing geopolitical tensions and supply risks.

The move is expected to improve near-term shipping flows, but continued uncertainty around US-Iran tensions and Hormuz transit disruptions is likely to keep oil prices supported at elevated levels.

Asian equities mixed; oil steady

Asian equity markets traded mixed following record highs on Wall Street, supported by strong corporate earnings and improved investor sentiment. Gains were seen in select markets, particularly in tech-heavy indices, while others showed mild declines, reflecting uneven regional momentum.

Meanwhile, crude oil prices remained largely steady, as US efforts to facilitate shipping through the Strait of Hormuz helped ease immediate supply disruption concerns, though geopolitical risks continue to underpin prices.

Overall, global markets reflected cautious optimism, with strong US cues supporting sentiment, while geopolitical uncertainty and mixed regional performance kept markets rangebound.

Huayou Cobalt cuts Indonesian nickel plant capacity

China's Huayou Cobalt has halved production at its Indonesian nickel plant, following a sharp surge in sulphur prices, a key input for HPAL (high-pressure acid leach) operations.

The company will temporarily suspend select production lines from 1 May, impacting around 50% of plant output, as rising sulphur costs significantly increase processing expenses for battery-grade nickel.

The move highlights cost pressures in Indonesia's nickel processing sector, potentially tightening near-term supply of refined nickel products.