Industrial Metals Weekly Review

Advisory Bazaar Info Services LLP

The global industrial metals market delivered a mixed performance during the week, with strength in copper, zinc, nickel, and tin offset by weakness in aluminium and lead. Declining LME inventories and resilient demand from China continued to provide medium-term support, while a stronger US dollar and rising Treasury yields limited overall market gains.

LME Base Metals Performance

* Copper gained 0.34% to close at $13,611.5/tonne, supported by tightening inventories and improving supply-demand fundamentals.

* Aluminium declined 0.78% to $3,165.0/tonne, reflecting softer market sentiment.

* Lead eased 0.08% to $1,885.5/tonne.

* Zinc advanced 0.21% to $3,587.5/tonne.

* Nickel edged 0.09% higher to $17,310/tonne.

* Tin outperformed all major base metals, rising 1.01% to $53,990/tonne.

SHFE Market Performance

Shanghai Futures Exchange (SHFE) traded with a mixed trend during the week:

* Copper fell 0.10% to 104,630 yuan/tonne.

* Aluminium declined 0.06% to 23,205 yuan/tonne.

* Lead dropped 0.76% to 15,640 yuan/tonne.

* Zinc gained 0.16% to 24,810 yuan/tonne.

* Nickel increased 0.13% to 132,900 yuan/tonne.

* Tin rose 0.71% to 414,810 yuan/tonne.

Precious Metals & Energy Markets

Shanghai Gold gained 0.18% to 885 yuan/gram, while Shanghai Silver climbed 1.39% to 14,323 yuan/kg. However, profit booking towards the end of the week triggered a sharp decline in gold, silver, platinum, and palladium futures.

Energy markets remained under pressure:

* SC Crude Oil declined 2.55% to 578 yuan/barrel, touching an intraday low of 569 yuan/barrel.

* Brent Crude slipped to $92.37/barrel.

* WTI Crude weakened to $89.77/barrel.

Global Economic Highlights

Several macroeconomic developments influenced commodity markets during the week:

* US oil rig count declined to 450, while gas rigs increased to 127.

* The US 10-year Treasury yield rose to 4.6972%, supporting the US dollar.

* A stronger dollar weighed on the euro and British pound.

* US equity markets ended mixed, with the Dow Jones and S&P 500 posting modest gains, while the Nasdaq opened lower.

Copper Market Highlights

Copper remained supported by improving operational and trade developments:

* Production resumed at Chile’s Los Pelambres copper mine following heavy rainfall, with the company maintaining its 2026 production guidance of 340,000–360,000 tonnes.

* China’s copper imports during the first half of 2026 declined 1.3% to 1.80 million tonnes, while exports of copper products surged 25.8% to 555,000 tonnes.

* China’s scrap copper imports increased 8.4% to 1.242 million tonnes, although imports from the United States plunged 94.7%.

Aluminium & Steel Update

* Brazil’s aluminium exports to Europe fell 47.3%, although exports during the March–June period increased 61.9%.

* Brazilian aluminium and steel producers are accelerating emissions certification to comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM) requirements.

* Brazil’s steel billet exports to Europe jumped 283.7%, approaching 1 million tonnes.

Inventory Update

Inventory data remained supportive for industrial metals:

* On 24 July, LME inventories of copper, aluminium, zinc, lead, nickel, and tin all declined, indicating tightening physical supply.

* SHFE warehouse stocks also showed lower receipts across most base metals, while silver warehouse receipts recorded an increase.

Weekly Outlook

Industrial metals ended the week with a mixed but generally constructive tone. Copper, zinc, nickel, and tin continued to benefit from tightening inventories and resilient export demand from China. Meanwhile, aluminium and lead remained under pressure due to softer market sentiment.

Looking ahead, declining exchange inventories and improving physical demand could continue to support base metals over the medium term. However, a stronger US dollar, elevated Treasury yields, and ongoing global economic uncertainty are likely to keep market volatility elevated in the coming weeks.