LME base metals trade mixed; nickel jumps 4% w-o-w amid bullish momentum

• Taiwan tightens aluminium trade monitoring to curb Chinese "origin washing"
  
  
• Crude oil prices jump over 2% on stalled US-Iran talks, Hormuz risk continues
  
  

Base metals on the London Metal Exchange (LME) traded mixed on 24 April 2026, with nickel, zinc, and lead posting gains, while aluminium and copper closed lower. Nickel recorded the sharpest rise of 1.48% to $19,015/t, followed by zinc, which increased 0.56% to $3,473/t, while lead edged higher by 0.41% to $1,963/t. On the downside, aluminium declined 0.80% to $3,591/t, while copper slipped 0.34% to $13,310/t.

On the inventory front, stock movements remained largely on the downside, indicating continued tightening in near-term supply conditions. Zinc inventories registered the steepest fall of 1.46% to 104,300 t, followed by lead, which declined 0.63% to 270,975 t. Aluminium stocks dropped 0.58% to 378,825 t, while nickel inventories eased 0.08% to 277,548 t. In contrast, copper stocks rose marginally by 0.11% to 396,000 t, reflecting selective replenishment amid broader drawdowns across major base metals.

Domestic market overview

India's non-ferrous scrap prices traded mixed d-o-d. Aluminium tense scrap (loose), ex-Delhi, increased by INR 1,500/t or 0.5% to INR 292,000/t from INR 290,500/t in the previous session. Meanwhile, ex-Chennai prices also rose by INR 1,500/t or 0.5% to INR 307,000/t from INR 305,500/t earlier.

In the copper segment, sentiment remained slightly weak. Copper armature scrap (Cu 99%), ex-Delhi, declined by INR 1,000/t or 0.1% to INR 1,134,000/t from INR 1,135,000/t previously, indicating cautious buying interest in the domestic market.

Other market updates

LME nickel gains 4% w-o-w on bullish momentum

LME nickel prices recorded a firm upward trend in the week ended 24 April, increasing from $18,250/t to $19,015/t, reflecting improved market sentiment. After a marginal correction on 21 April, prices rebounded steadily with the strongest gains seen between 22-24 April.

The weekly upside of $765/t, or 4.19%,was primarily supported by tighter mining regulations in Indonesia. Projections from the International Nickel Study Group (INSG) indicate the market may move from a surplus of 283,000 t in 2025 to a deficit of 32,000 t in 2026, which have reinforced expectations of a structural supply shift.

Additionally, a weaker US dollar and expectations of increased liquidity following China's upcoming ultra-long special bond issuances improved risk appetite across the base metals complex.

South32 net cash up, aluminium output stable in Q1CY'26

South32 reported a $121 million increase in net cash during the March 2026 quarter, taking total net cash to $96 million, supported by strong aluminium and base metals market performance despite ongoing growth investments.

On the operational front, year-to-date alumina production increased 1%, aided by record output at Brazil Alumina. Aluminium production remained largely stable, with Hillside Aluminium operating near technical capacity, while Brazil Aluminium improved pot stability and output.

Meanwhile, Mozal Aluminium completed its planned transition to care and maintenance, with operational results exceeding guidance by 3%.

Additionally, stable operating performance from major producers such as South32 and improved output at select assets offered partial relief to supply concerns, though broader availability remained tight.

Taiwan tightens aluminium trade monitoring

Asian aluminium market sentiment remained supported following Taiwan's move to introduce new customs codes for aluminium structures and glass curtain walls, aimed at curbing origin washing of Chinese material. The development is expected to tighten monitoring of regional trade flows and restrict indirect supply channels.

The revised classification may limit routing flexibility for Chinese-origin aluminium products, potentially tightening availability across select downstream segments in Asia. This comes amid already firm global fundamentals and low inventories.

Overall, increased regulatory scrutiny on aluminium trade is likely to support prices by reinforcing supply discipline and reducing arbitrage opportunities in the near term.

Crude oil jumps over 2% on stalled US-Iran talks, Hormuz risk continues

Global crude prices rose more than 2% on Monday amid delayed US-Iran peace talks and continued disruptions in the Strait of Hormuz, keeping geopolitical risk premium elevated. Brent touched $107.55/bbl before easing to $101/bbl, while WTI climbed to $96.42/bbl.

Market sentiment remained firm as uncertainty over Gulf export flows supported prompt supply concerns and backwardation. Hormuz accounts for nearly 20% of global seaborne crude trade.

Further price movement will depend on diplomatic progress and easing of shipping constraints in the region.