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)

Copper

50,830-50,850

360

Aluminium

16,210-16,250

50

Zinc

26,350-27,150

470

Lead

21,400-21,600

0

Tin

144,000-14,6000

1,000

Nickel

85,700-86,500

1,000

What to read next
Following an initial consultation with the market, Fastmarkets is proposing to:  The new specifications would be as follows, with amendments in italics: MB-CU-0002 Copper grade 1 cathode premium, ddp Midwest US, US cents/lb Quality: Grade A 99.9935% min copper cathode conforming to LME specifications BS EN 1978:2022 – Cu-CATH-1 or Grade 1 Electrolytic Copper Cathode ATSM B1115-10 Quantity: Min […]
Fastmarkets’ 2025 outlook for key raw materials and ingredients used in the production and distribution of fast-moving consumer goods.
Vale Base Metals plans to boost annual copper production to 700,000 tonnes by 2035, aiming to become a top-five global producer of nickel and copper. CEO Shaun Usmar highlights a focus on productivity, cost optimization and sustainable growth. With strong assets in Canada and Brazil, Vale is well-positioned to meet rising global demand.
Fastmarkets has corrected its fob Australia alumina index, which was published incorrectly on Monday June 2 and Tuesday June 3 due to a back-end calculation error. Fastmarkets has also corrected all the related inferred indices. On June 2 the following prices were published incorrectly: Fastmarkets’ MB-ALU-0002 Alumina index, fob Australia, was published in error as $375.59 per […]
Mexico’s strategic role in automotive nearshoring is fueling demand for recycled aluminium, with investment in scrap-intensive sectors boosting its non-ferrous secondary markets. Despite tariff uncertainties, USMCA compliance and EV production growth continue to attract global manufacturers.
Goldcorp founder Rob McEwen is back in the spotlight with a bold bet on copper in Argentina. The $2.5 billion Los Azules project, set to become Argentina’s first major copper mine in over 30 years, is reshaping the country’s mining industry while raising sustainability standards. Positioned as a key player in addressing a global copper shortage, the project highlights innovation, persistence and a commitment to meeting the growing demand from global electrification.