LME base metals show mixed trends; strong China demand lifts nickel prices

• LME aluminium nears 4-year high amid supply disruption risks
  
  
• Strike at Glencore copper refinery raises supply concerns
  
  

Base metals on the London Metal Exchange (LME) traded mixed but mostly higher d-0-d on 13 March 2026, supported by firm sentiment and supply concerns. Aluminium rose 1.72% to $3,517/t, while zinc slipped 0.23% to $3,302/t. Lead edged up 0.18% to $1,940/t, and nickel gained 0.28% to $17,742/t, whereas copper declined 0.33% to $13,000/t.

Warehouse inventory levels were largely lower. Aluminium stocks fell 0.50% to 450,125 t, while zinc inventories dipped 0.05% to 98,000 t. Nickel stocks decreased 0.29% to 286,248 t, and lead inventories remained unchanged at 284,875 t. In contrast, copper stocks increased 3.35% to 312,075 t.

Domestic market overview

Domestic non-ferrous scrap prices in India showed mixed trends, reflecting cautious market sentiment. Aluminium tense scrap (loose), ex-Delhi, remained unchanged at INR 233,000/t, while ex-Chennai prices also held steady at INR 238,500/t.

Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, declined by INR 6,000 or 0.5% to INR 1,134,000/t from INR 1,140,000/t, indicating soft buying interest in the market.

Other market updates

LME nickel nears monthly high on strong China demand

Nickel prices on the London Metal Exchange (LME) climbed to a monthly high near $17,700/t on 11 March, supported by stronger Chinese trade data and rising stainless steel production. Prices traded between $17,300/t and $17,780/t, settling at $17,742/t.

Market sentiment was further supported by declining LME inventories, which fell by 840 t to 286,248 t, along with concerns over tight nickel ore supply. Despite a stronger US dollar, improving demand prospects from China continued to underpin prices.

Rio Tinto, Chinalco receive final approval for CBA stake acquisition

Rio Tinto and Aluminum Corporation of China (Chinalco) have received final regulatory clearance from Brazil's antitrust authority to jointly acquire a controlling stake in Companhia Brasileira de Alumnio (CBA).

The $910 million transaction, announced earlier this year, will be executed through a joint venture in which a Chinalco subsidiary will hold 67% and Rio Tinto 33%. CBA operates a low-carbon, vertically integrated aluminium value chain, covering bauxite mining, alumina refining, and aluminium smelting

Mexico pushes to remove steel and aluminium tariffs in USMCA review

Mexico is seeking the removal of mutual tariffs on steel and aluminium during the upcoming review of the United States-Mexico-Canada Agreement (USMCA) to strengthen regional trade integration.

President Claudia Sheinbaum said products complying with rules of origin should ideally face zero tariffs, as current measures hinder cross-border trade. The proposal also includes tariff reductions in the automotive sector, a key pillar of North American manufacturing.

US issues temporary licence allowing sale of Russian oil at sea

The United States has issued a new Russia-related general licence allowing the sale of Russian crude and petroleum products already loaded on tankers at sea for 30 days, valid from 12 March to 11 April 2026.

The waiver aims to stabilise global energy markets after disruptions to shipping through the Strait of Hormuz pushed oil prices above $100/bbl. However, the move may complicate Western efforts to limit Russia's oil revenues.

Workers strike at Glencore's Townsville copper refinery

Workers at Glencore's Townsville copper refinery in North Queensland staged a four-hour strike following prolonged negotiations over wages and working conditions.

The refinery is a key part of Glencore's North Queensland copper operations, and extended industrial action could disrupt refining activity if negotiations fail to reach an agreement.

Aluminium nears 4-year high amid supply disruption risks

LME aluminium prices approached a four-year high, driven by supply concerns linked to the Middle East conflict and disruptions to shipping through the Strait of Hormuz.

The Gulf region accounts for roughly 9% of global aluminium production, and potential smelter shutdowns or export disruptions have pushed prices above $3,500/t, adding a risk premium to the market.