Metal markets displayed mixed performance overnight with LME copper leading gains, climbing 1.61% to an intraday high of $14,779 per metric ton and establishing a new record high since its listing. LME lead also rose, gaining 0.82%, while LME tin declined 0.45%. Domestically, SHFE copper gained 0.94%, SHFE aluminum rose 0.8%, SHFE lead added 0.72%, and SHFE tin fell 0.24%.
Precious metals showed weakness overnight. COMEX gold fell 1.71% and COMEX silver dropped 0.56%. In Shanghai, SHFE gold declined 0.7% and SHFE silver fell 0.25%.
The broader ferrous metals complex posted gains, with coking coal rising 1.73% and coke advancing 0.83%, while iron ore was the exception, falling 0.14%. The US dollar index weakened, dropping 0.05% to 98.87 as investors await crucial inflation data to gauge the Federal Reserve's rate decision path. According to CME FedWatch data, the probability of the Fed keeping rates unchanged in September stands at 40.6%, with a 59.4% probability of a cumulative 25 basis point hike.
For October, the odds show 29.8% for unchanged rates, 54.4% for a 25bp hike, and 15.8% for a 50bp hike. Crude oil markets surged significantly on geopolitical concerns. WTI crude gained 3.03% and Brent rose 2.46%, driven by reports of escalating Middle East tensions.
According to Fox News, US military operations targeted Iranian oil tankers near Hormuz Island and Jask as part of broader economic pressure on Iran. Saudi Arabia's Ministry of Energy reported that multiple energy facilities faced attacks, with fires breaking out at several locations and temporary disruptions to operations. Goldman Sachs reported that refined product flows through the Strait of Hormuz are at only 35% of pre-war levels, while crude oil flows remain at 70%.
The bank noted that supply shocks impact refined products more severely than crude oil, particularly heavy products such as diesel. Bank of America raised its Brent crude oil price forecast, projecting a peak of $83 per barrel in H2 2026 and $75 per barrel in 2027, with a potential $95-120 trading range if Middle East conflict persists through year-end. On the geopolitical front, Zimbabwe has immediately banned antimony and tungsten exports alongside suspending ore and concentrate shipments as part of efforts to promote local processing of raw materials.
This action mirrors strategies adopted by other African nations including Guinea, Ghana, and the Democratic Republic of Congo to extract greater value from natural resources. Source: Shanghai Metals Market (SMM), September 9, 2026; Jin10 Data APP; Goldman Sachs; Bank of America; Fox News; Saudi Arabia Ministry of Energy.
Source: news.metal.com