LME base metals rally on strong buying; Oil prices rose on US-Iran tensions

• Oman seeks Indian partners for downstream aluminium
  
  
• South32 will close Mozal aluminium smelter by March 2026
  
  

Base metals prices on the London Metal Exchange (LME) traded mostly higher on 12 February 2026, supported by improved market sentiment and selective buying across the complex. Nickel led the gains, surging 4.36% to $17,720/t, followed by zinc, which rose 2.84% to $3,437/t. Copper advanced 1.81% to $13,237/t, while lead gained 1.44% to $1,938/t. Aluminium recorded a modest uptick of 0.16% to $3,098/t, reflecting steady performance across the metals pack.

LME warehouse inventories showed mixed movements, highlighting varied supply dynamics. Aluminium stocks slipped 0.25% to 485,750 t, while zinc inventories declined 1.41% to 105,250 t. Copper stocks increased 1.59% to 192,100 t, suggesting relatively improved availability. Meanwhile, nickel and lead inventories remained unchanged at 285,750 t and 232,750 t, respectively, indicating stable near-term supply conditions.

Domestic market overview

Domestic non-ferrous scrap and ingot prices in India showed mixed trends. Aluminium Tense Scrap (Loose), ex-Delhi, remained steady at INR 213,000/t, unchanged from the previous level. In contrast, Aluminium Ingot ADC12 (Non-Automobile), ex-Chennai, increased by INR 3,500 or 1.4% to INR 253,500/t from INR 250,000/t, reflecting improved demand. Meanwhile, Copper Armature Scrap (Cu 99%), ex-Delhi, declined by INR 7,000 or 0.6% to INR 1,145,000/t from INR 1,152,000/t, indicating some selling pressure in the copper scrap segment.

Oil prices rise on concerns about US-Iran tensions

Oil prices edged higher as markets reacted to escalating geopolitical tensions between the United States and Iran, with Brent crude and US. West Texas Intermediate futures climbing amid fears that any conflict or disruption to Middle Eastern supply routes could tighten global oil markets. Despite a larger-than-expected build in US crude stocks, investor anxiety over stalled talks and potential military escalation supported prices, reflecting the risk premium attached to energy markets amid ongoing diplomatic uncertainty.

Oman eyes Indian partners to expand downstream aluminium industry with new zone

Oman is courting Indian investment to help build a new downstream aluminium processing zone that focuses on value-added manufacturing rather than just raw material exports, part of its industrial diversification under Vision 2040; officials in New Delhi highlighted incentives, strategic location and strong India-Oman ties as key draws for Indian firms to participate in rolling, extrusion, fabrication and other aluminium value-chain activities.

South32 to Close aluminium smelter and focus on copper and zinc growth

Australian miner South32 said it will shut its Mozal aluminium smelter in Mozambique by March 2026 after failing to secure an affordable, long-term electricity supply, and will instead concentrate investment on expanding its copper and zinc assetsa strategic shift toward higher-growth base metals amid strong commodity prices.