Global metals markets experienced a significant broad-based decline on September 28, 2026, with losses concentrated across both domestic Chinese futures exchanges and international venues, according to Shanghai Metals Market (SMM) midday commentary. Base metals traded on the Shanghai Futures Exchange (SHFE) all moved lower during the session. SHFE copper declined 0.72%, aluminum fell 0.68%, lead dropped 0.77%, and zinc retreated 0.97%.
Among the more volatile contracts, SHFE tin fell 1.25% and SHFE nickel declined 1.18%. Casting aluminum futures lost 0.51% while alumina bucked the trend with a 0.33% gain. The most-traded lithium carbonate contract led losses among battery materials, falling 4.15%.
Silicon metal futures declined 0.58%, though polysilicon posted a 1.23% gain. In the ferrous complex, iron ore fell 0.91% with rebar and hot-rolled coil each declining approximately 0.4%. Stainless steel advanced 0.36%.
The most-traded coking coal contract experienced the day's largest decline among energy-related commodities, falling 2.64%, while coke futures fell 0.59%. International base metals on the London Metal Exchange (LME) similarly declined across the board as of 11:41 GMT+8. LME copper led the declines with a 1.01% loss, followed by aluminum at minus 0.92%, zinc at minus 0.86%, tin at minus 1.72%, lead at minus 0.57%, and nickel at minus 0.36%.
Precious metals experienced sharper declines than base metals. COMEX gold fell 2.12% and COMEX silver dropped 3.74%, with domestic precious metals on the Shanghai Futures Exchange following suit. SHFE gold declined 2.07% while the most-traded SHFE silver contract fell 4.09%.
Platinum and palladium futures also posted significant losses, with platinum declining 1.72% and palladium falling 2.95%. Market activity showed mixed signals in broader economic indicators. The People's Bank of China (PBOC) conducted net drain operations of 160.3 billion yuan through reverse repos and maturing medium-term lending facility operations.
Industrial enterprise profits rose 15.7% year-on-year from January through August, with mining profits surging 35.1% and manufacturing profits increasing 17.4%, though profit growth moderated to 4.2% in August due to year-ago base comparisons. The US dollar index rose 0.08% to 101.11, potentially weighing on commodity valuations for dollar-denominated investors. Shipping costs showed strength contrary to broader metals weakness, with the most-traded European shipping route container freight futures contract rising 5.11% to 2,888 points.
Crude oil markets bucked the metals decline, with WTI crude advancing 1.19% and Brent crude gaining 1.07%. Spot market conditions reflected underlying weakness. Zinc spot prices for #0 grade concentrated at 26,355-26,650 yuan per metric ton, while #1 zinc traded at 26,285-26,580 yuan per metric ton.
Copper spot premiums in North China fell 100 yuan per metric ton from the previous trading day, declining to an average of 900 yuan per metric ton against the front-month contract, with average transaction prices falling 835 yuan per metric ton to 110,935 yuan per metric ton. The broad-based decline reflected deteriorating market sentiment ahead of upcoming macroeconomic data releases, including the US Dallas Federal Reserve business activity index for September and speeches from Federal Reserve and European Central Bank officials. The contraction in precious metals was particularly pronounced, suggesting risk-off positioning among investors despite relatively resilient economic data from China's industrial sector.
Source: Shanghai Metals Market (SMM) Midday Commentary, September 28, 2026; news.metal.com
Source: news.metal.com