LIVE FUTURES REPORT 26/09: SHFE base metals prices continue climb; zinc boosted by LME gains

Base metals prices on the Shanghai Futures Exchange (SHFE) were stronger across the board during the Asian morning trading session on Tuesday September 26, with zinc boosted by price gains on the London Metal Exchange on Monday.

The most-traded November zinc contract on the SHFE traded at 25,490 yuan ($3,850) per tonne as of 02:30 BST, up 315 yuan from Monday’s close, with over 200,000 lots of the contract having changed hands so far.

The LME three-month zinc price had jumped 2% to as high as $3,120 per tonne on Monday.

SHFE base metal prices are generally seeing support from the large drawdown in stocks ahead of China’s weeklong National Day holiday, which begins October 1.

Base metals stocks at SHFE-registered warehouses, except for aluminium, were all lower on September 22 as market participants stepped up procurement before the Chinese holidays.

SHFE copper stocks fell to 141,318 tonnes in the week ending September 22, down 25,429 tonnes or 15.3% on the previous week. It was also the fifth consecutive week that SHFE copper stocks have declined. Zinc inventories slipped 2,438 tonnes over the week to 67,225 tonnes on September 22.

On Monday, the SHFE announced that effective September 26 it will charge transaction fees for day trades of the November lead contract at 0.02% of the transacted amount. SHFE lead prices had surged since last week on concerns over supply constraints with the most active lead contract rising to as high as 21,070 yuan per tonne on September 21, this was the highest since December 2016.

“In the short-term, the fee rise by SHFE could result in profit-taking. But in the medium-term, SHFE lead and zinc prices should remain supported. Any corrections are unlikely to be major,” China’s Galaxy Futures said late on Monday.

Rest of complex higher

  • The SHFE November copper contract rose 180 yuan to 50,440 yuan per tonne.
  • The SHFE November aluminium contract price increased 85 yuan to 16,505 yuan per tonne.
  • The SHFE November lead contract price edged up 35 yuan to 20,635 yuan per tonne.
  • The SHFE January nickel contract price gained 890 yuan to 84,950 yuan per tonne
  • The SHFE January tin contract price jumped 1,450 yuan to 146,800 yuan per tonne.

Currency moves and data releases

  • The dollar index was up 0.1% at 92.61 as of 01:47 BST.
  • In other commodities, the Brent crude oil spot price eased 0.04% to $56.06 per barrel as of 01:48 BST. The price had surged as high as $59.23 on Monday – the highest since July 2015 – on concerns over supply disruptions after Turkey threatened to close the route for Kurdish shipments in retaliation for holding their independence vote.
  • The Shanghai Composite was 0.08% down to 3,338.94 at 03:58 BST.
  • Geopolitical tensions in East Asia heightened after North Korea’s foreign minister said on Monday that US president Donald Trump’s recent remarks are a declaration of war, and that Pyongyang has the right to take countermeasures, including shooting down US planes.
  • In data on Monday, the German Ifo business climate came in at 115.2, a miss from the expected 116. China’s CB leading index stood at 1.1%, above the previous reading of 1.0%.
  • The economic agenda is light today with mainly the CB consumer confidence and new home sales from the USA of note.
  • In addition, US Federal Open Market Committee chairwoman Janet Yellen is due to speak at the National Assn for Business Economics Annual Meeting in Cleveland.

SHFE snapshot at 0930 Shanghai time
Most traded SHFE contracts
  Price (yuan/t)  Change since yesterday’s close (yuan)
Copper  50,440 180
Aluminium 16,505 85
Zinc 25,490 315
Lead 20,635 35
Tin  146,800 1,450
Nickel  84,950 890

LME snapshot at 0230 London time
Latest 3M  LME Prices
  Price ($/t)  Change since yesterday’s close ($)
Copper 6,480 30
Aluminium 2,147.5 -0.5
Lead 2,483 11
Zinc 3,111.5 15
Tin 20,735 35
Nickel 10,610 30

Changjiang spot snapshot on September 26


Range (yuan/t)

Change (yuan)



















What to read next
Aluminium and nickel appear to have once again escaped inclusion in the latest list of sanctions imposed by western governments on Russia, ending days of speculation that increased both the prices and the traded volumes of the metals.
Fastmarkets launches MB-CU-0513 copper cathode equivalent grade (EQ), cif Southeast Asia, $/tonne on Tuesday February 20.
Fastmarkets’ 2024 outlook for key raw materials and ingredients used in the production and distribution of fast-moving consumer goods
Weak demand continues to stem profitability and prevent capacity return in the European aluminium market, Norsk Hydro’s chief executives told Fastmarkets in an exclusive interview on Wednesday February 14.
The publication of Fastmarkets’ rand fixing prices for LME trade for Monday February 12 were delayed due to a technical issue.
The copper concentrate market was already tight, but the addition of major new smelting capacity this year – starting with the expansion of Freeport’s Gresik smelter in Indonesia — will likely mean maintenance breaks, capacity curtailments and potentially even closures while operating costs start to become untenable, Fastmarkets understands.