Commodity Market Update (Midday)

Advisory Bazaar Info Services

Metals Market

China’s base metals market traded broadly higher at the midday close. SHFE Copper gained 0.91%, Aluminium 1.00%, Lead 0.23%, Tin 0.81%, and Nickel 1.55%, while Zinc declined 0.58%.

Among other industrial metals, the most-active Cast Aluminium futures rose 0.58%, Alumina 0.38%, Lithium Carbonate 1.07%, Silicon Metal 0.36%, and Polysilicon futures 1.40%.

Ferrous metals also remained largely positive. Iron Ore was nearly unchanged at 702.5 yuan/mt, Rebar edged higher, while Hot-Rolled Coil (HRC) slipped marginally. Stainless Steel outperformed with a 2.06% gain, while Coking Coal and Coke advanced 1.91% and 0.85%, respectively.

Overseas markets also traded in positive territory. LME Copper rose 0.77%, Aluminium 0.56%, Lead 0.80%, Zinc 0.61%, Tin 0.77%, and Nickel 0.81%.

In precious metals, COMEX Gold climbed 0.54% and COMEX Silver surged 1.87%. On the domestic market, SHFE Gold gained 0.35%, while SHFE Silver advanced 1.64%.

Zinc Market

The Tianjin spot market saw #0 Zinc ingots trading in the range of 24,760–24,950 yuan/mt, while Zijin brand traded at 24,880–25,010 yuan/mt. The Tianjin market maintained a discount of around 110 yuan/mt against the Shanghai market, reflecting relatively weaker local spot demand.

Macro Update

China’s People’s Bank of China (PBOC) conducted 46.5 billion yuan of 7-day reverse repo operations while 605.5 billion yuan matured, resulting in a net liquidity withdrawal of 559 billion yuan from the financial system.

China’s property market showed encouraging signs, with Shenzhen’s new home sales rising 32.5% year-on-year in July, indicating improving housing demand despite a monthly slowdown.

The US Dollar Index remained steady around 100.01. The US ISM Manufacturing PMI climbed to 55.6 in July, its highest level since May 2022, highlighting continued strength in manufacturing activity, supported by solid consumer demand, business investment, and government spending.

Federal Reserve official John Williams reiterated that while inflation is expected to ease in the second half of the year, the Fed remains prepared to raise interest rates if inflation fails to move sustainably toward its 2% target.

Crude Oil

Crude oil prices rebounded as uncertainty surrounding US-Iran negotiations and concerns over potential supply disruptions supported market sentiment. At midday, WTI Crude gained 0.73%, while Brent Crude advanced 1.16%.

Key Events to Watch

Market participants will closely monitor the release of the US June Trade Balance, JOLTS Job Openings, and Factory Orders data later today. Investors will also keep an eye on SpaceX’s Q2 2026 earnings and developments from the Flash Memory Summit (FMS) 2026, where leading technology companies are expected to provide industry updates.

Market Outlook

The broad-based strength across base metals, resilient US manufacturing data, and the recovery in crude oil prices have improved overall market sentiment. However, traders are expected to remain cautious ahead of key US economic data releases, which could influence Federal Reserve policy expectations and drive short-term volatility across commodity markets.