Metals markets recorded broad losses during the morning session of July 24, 2026, with base metals on both domestic Chinese exchanges and the London Metal Exchange coming under pressure, according to the Shanghai Metals Market (SMM) midday review. On the Shanghai Futures Exchange (SHFE), base metals fell broadly. SHFE copper declined 1.21%, SHFE tin dropped 1.59%, and SHFE lead retreated 0.82%.
SHFE aluminum and SHFE zinc both fell within 0.5%, while SHFE nickel bucked the trend with a modest gain of 0.2%. On the London Metal Exchange, as of 11:40 local time, LME lead held flat at $1,887 per metric ton. LME copper posted a marginal gain of 0.43%, while LME aluminum, LME tin, and LME nickel all fell within 0.5%, reflecting similarly subdued conditions across the complex.
In the Guangdong physical copper market, the average spot price of #1 copper cathode stood at 105,085 yuan per metric ton, down 1,215 yuan per metric ton from the previous trading day. High-quality copper was quoted at a premium of 190 yuan per metric ton against the front-month contract, a decline of 10 yuan per metric ton from the prior session. Standard-quality copper held at a premium of 140 yuan per metric ton, while SX-EW copper was quoted at a premium of 80 yuan per metric ton, both unchanged from the previous trading day.
Precious metals suffered sharp losses. On COMEX, gold fell 0.44% and silver declined 0.88%. Domestically, the selloff was more severe: SHFE gold dropped 2.65% and SHFE silver fell 4.82%.
Platinum and palladium were the worst performers, with platinum most-traded futures falling 4.94% and palladium most-traded futures plunging 5.68%. In other commodity markets, polysilicon most-traded futures fell 1.67%, lithium carbonate most-traded futures declined 0.74%, and casting aluminum most-traded futures lost 0.58%. Alumina most-traded bucked the trend with a gain of 0.37%.
Ferrous metals also weakened, with iron ore falling 0.8%, rebar down 0.68%, hot-rolled coil declining 0.3%, and stainless steel losing 0.91%. Europe container shipping futures most-traded fell 1.65% to 2,807.5 points as of midday. On the macroeconomic front, the People's Bank of China (PBOC) conducted a net withdrawal of 361.5 billion yuan from the open market, executing 89 billion yuan in 7-day reverse repo operations at an interest rate of 1.40% against 450.5 billion yuan of maturing reverse repos.
On a positive note for domestic infrastructure investment, State Grid Corporation of China reported that its fixed-asset investment in the first half of the year exceeded 310 billion yuan, up 12.6% year-on-year, with construction accelerating on 15 ultra-high-voltage projects and 37 pumped-storage power stations. New energy grid-connected installed capacity in State Grid's operating area reached 1.55 billion kW as of end-June. On the international monetary front, the US dollar index edged down 0.02 to 101.42 as of 11:40.
US Treasury yields rose to their highest levels of the year, with the two-year yield climbing approximately 4 basis points to around 4.34% — its highest since early 2025 — and the 30-year yield reaching 5.19%, just below its highest level since 2007. Markets are increasingly pricing in the possibility of a Federal Reserve rate hike in the near term. According to the CME FedWatch Tool, the probability of no change in July stands at 65.3%, while the cumulative probability of a 25 basis point hike is 34.7%.
For September, the cumulative probability of a 25 basis point hike reaches 57%, with an additional 25.4% probability of a 50 basis point increase. US initial jobless claims for the week ending July 18 fell sharply by 22,000 to 187,000, well below market expectations of 212,000, signaling continued stability in the labour market and reinforcing the case for the Fed to maintain its focus on inflation, which remains above the 2% target. Geopolitical tensions in the Middle East added further complexity to the market outlook.
Houthi forces announced attacks on Saudi oil tankers, opening the Bab el-Mandeb Strait as a new conflict front and creating what analysts described as a 'dual-chokepoint' risk to global oil supplies alongside the Strait of Hormuz. WTI crude was up 0.01% and Brent was down 0.07% as of 11:40, though analysts warned prices could surge significantly if disruptions persist. ANZ maintained its end-Q3 2026 Brent crude forecast at $92 per barrel, but noted that intensified regional supply disruptions could push prices to $120 per barrel.
Bob McNally, President of Rapidan Energy Group and former White House official, warned that the scale of a potential second round of military conflict could pose extreme risks to shipping and energy infrastructure. Source: Shanghai Metals Market (SMM), Jinshi Data APP, Jin10 Data APP, CME FedWatch Tool, ANZ, CCTV, Wallstreetcn.
Source: news.metal.com