Commodity Market Update Today (31 July 2026): Base Metals Gain on China Stimulus Hopes; Ferrous Metals Under Pressure
Published by Advisory Bazaar Info Services
Commodity Market Overview
Global and domestic commodity markets traded mixed on Friday. Base metals extended gains on expectations of further policy support from China and continued liquidity injections by the People’s Bank of China (PBOC). However, ferrous metals remained under pressure amid weak manufacturing data from China and concerns over industrial demand.
Base Metals Update
Most SHFE base metals traded higher during the morning session.
* Copper: +0.72%
* Aluminium: +0.23%
* Zinc: +0.87%
* Tin: +1.89%
* Nickel: +0.49%
* Lead: -0.99%
Among other metals, cast aluminium gained 0.15%, polysilicon rose 0.88%, and silicon metal edged up 0.12%. Alumina declined 0.76%, while lithium carbonate extended losses, falling 3.44%.
Ferrous Metals Update
The ferrous complex remained weak.
* Iron Ore: -0.76%
* Rebar: -0.50%
* Hot Rolled Coil (HRC): -0.86%
* Stainless Steel: +0.41%
* Coking Coal: -3.48%
* Coke: -2.93%
LME Metals Update
LME base metals traded mixed.
* Copper and aluminium posted marginal gains.
* Zinc rose 0.35%.
* Tin gained 0.10%.
* Lead declined 0.29%.
* Nickel slipped 0.23%.
Precious Metals
COMEX precious metals witnessed profit booking.
* COMEX Gold: -0.68%
* COMEX Silver: -0.74%
Domestic precious metals remained firm.
* SHFE Gold: +0.47%
* SHFE Silver: +0.97%
* Platinum Futures: +1.11%
* Palladium Futures: +1.73%
Copper Spot Market
Guangdong #1 copper cathode prices moved higher despite lower spot premiums. Inventories declined for the third consecutive session, reflecting tighter physical availability, although improved arrivals kept premiums under pressure.
Macro Economic Updates
China
China’s Manufacturing PMI declined to 49.2 in July, indicating contraction in manufacturing activity. However, high-tech manufacturing remained resilient with a PMI of 53.3.
The National Development and Reform Commission (NDRC) is preparing a 2026–2030 domestic demand expansion strategy to strengthen economic growth.
Meanwhile, the People’s Bank of China (PBOC) injected 45 billion yuan through reverse repos today, taking this week’s net liquidity injection to 421.5 billion yuan.
US Economy
The US Dollar Index strengthened to 100.22.
US Core PCE Inflation eased to 3.3%, reinforcing expectations that inflation pressures continue to moderate. Markets remain focused on upcoming Federal Reserve policy guidance and key US economic data.
Bank of Japan
The Bank of Japan kept its benchmark interest rate unchanged at 1.0%, while reiterating that further rate hikes remain possible if inflation and economic conditions continue to improve.
Crude Oil Update
Crude oil prices traded lower.
* WTI Crude: -1.58%
* Brent Crude: -1.24%
Although geopolitical tensions in the Middle East remain elevated, improved oil shipments through the Strait of Hormuz have eased immediate supply concerns, weighing on prices.
Market Outlook
Base metals continue to receive support from expectations of additional Chinese economic stimulus and ample liquidity. However, weaker manufacturing activity in China continues to weigh on ferrous metals. Investors will closely monitor upcoming US economic data, Eurozone inflation figures, and future Federal Reserve policy signals for further market direction.