Introduction
The global metals market has entered a strong bullish phase, with copper and zinc prices rallying sharply on the London Metal Exchange (LME). Supply disruptions, rising manufacturing demand, and energy-linked production cuts have created a demand-supply imbalance that is now flowing directly into India’s spot and scrap markets.
For Indian traders, manufacturers, and scrap recyclers, November 2025 may be a month of price tightening, faster inventory turnover, and increased volatility.
LME Copper Hits Multi-Month High
Copper has climbed above US $11,000 per tonne, supported by:
- Production cuts in major South American mines
- Smelting constraints in China
- Higher demand from EV, electrical, and renewable industries
- Low global inventories at multi-year lows
This global momentum pushes India’s domestic copper spot rate toward ₹1,010–1,050/kg, with traders already adjusting their bids for high-purity scrap.
Zinc Follows with a Strong Positive Trend
Zinc is also experiencing an upward push globally due to:
- European energy-linked output cuts
- Higher galvanizing activity
- Lower warehouse stocks
As a result, Indian zinc spot prices are trending around ₹308–₹315/kg, with potential upside if the rally continues.
How Global Trends Influence Indian Prices
The Indian metals market closely tracks global benchmarks:
● Import Parity
When LME prices rise, imported-refined metals become more expensive, raising domestic prices to maintain parity.
● USD-INR Exchange Rate
The rupee near ₹84/USD increases landed cost for metal imports.
● Manufacturing Demand
India’s infrastructure growth (rail, auto, power) magnifies the global rally’s impact.
● Scrap Substitution
When refined copper becomes expensive, scrap becomes more attractive, lifting scrap rates.
Impact on Indian Scrap Sellers & Traders
Scrap Sellers Benefit
- High-purity copper scrap can fetch ₹1,000/kg or more
- Zinc die-cast and sheet scrap show higher inquiries
- Dealers receive faster responses from buyers as prices move up
Buyers Face Challenges
- Increased procurement cost
- Tight availability of high-quality scrap
- More volatility in price negotiations
Recyclers Are in Demand
Processing units may see increased orders for:
- Copper granules
- Aluminium ingots
- Zinc alloys
5. Short-Term Outlook (Next 2–3 Weeks)
Base Case:
- Copper: ₹1,000–₹1,055/kg
- Zinc: ₹308–₹320/kg
Bullish Scenario:
- Copper could test ₹1,100/kg if global supply remains constrained.
- Zinc could move to ₹325/kg with further European cuts.
Bearish Scenario:
- A drop in Chinese manufacturing PMI
- Strong USD rally
- Reduction in LME speculative buying
Long-Term Implications for India’s Metal Ecosystem
Increased Scrap Demand:
Manufacturers will rely more on domestic scrap to offset rising refine metal prices.
Better Margins for Scrap Processors:
Shredders, balers, and granulators may see better realization.
Shift Toward Recycling:
High global metal prices accelerate India’s move toward circular metal production.
Contract Pricing May Change:
More factories may adopt variable-price contracts linked to LME + premium.
Conclusion
Global metal price rallies have a direct and immediate impact on India’s market. With copper and zinc both trending strong, Indian sellers should monitor global signals closely.
