Commodity Market Update: China Base Metals Advance, Iron Ore Jumps 2%, US Jobs Data in Focus
Advisory Bazaar Info Services | August 6, 2026
China’s commodity markets traded mostly higher during the midday session on Thursday, supported by gains across most base metals and ferrous products. Investors remained focused on upcoming U.S. labour market data and developments in Middle East negotiations, which continue to influence global commodity prices.
China Base Metals Trade Mostly Higher
Shanghai Futures Exchange (SHFE) base metals posted a largely positive performance. Copper gained 0.40%, aluminium rose 0.23%, zinc climbed 1.49%, and tin advanced 0.26%. Lead edged higher, while nickel underperformed with a 2.10% decline.
Among other industrial metals, alumina increased 1.36% and silicon metal added 0.12%. In contrast, lithium carbonate fell 1.23%, polysilicon slipped 0.65%, and foundry aluminium futures edged lower.
Ferrous Metals Extend Gains
The ferrous complex remained firm during the session. Iron ore surged 2.00%, rebar gained 0.67%, hot-rolled coil (HRC) advanced 0.53%, coking coal rose 0.74%, and coke climbed 1.99%. Stainless steel was the only major laggard, declining 1.51%.
LME Base Metals Mixed
On the London Metal Exchange (LME), sentiment remained weaker. Copper declined 0.36%, lead eased 0.16%, zinc fell 0.37%, tin dropped 1.58%, and nickel lost 1.90%. Aluminium bucked the trend, posting a modest gain of 0.17%.
Precious Metals Remain Strong
Precious metals showed mixed performance globally. COMEX gold rose 0.44%, while COMEX silver slipped 0.05%. In China’s domestic market, SHFE gold jumped 3.72% and SHFE silver gained 3.19%. Platinum and palladium futures also advanced by 1.05% and 1.40%, respectively.
Guangdong Copper Spot Market
In Guangdong, the average price of #1 copper cathode increased by 910 yuan to 107,900 yuan per metric ton. However, spot premiums weakened as inventories continued to rise amid stronger arrivals and softer downstream demand, indicating cautious physical market activity.
Macro Highlights
China’s People’s Bank of China (PBOC) conducted a net liquidity withdrawal of 269.5 billion yuan through open market operations.
According to the China Gold Association, domestic gold ETF inflows during the first half of 2026 declined 66.17% year-on-year. Meanwhile, China’s central bank added 40.12 metric tons of gold reserves during the period, taking total official holdings to 2,346.45 metric tons by the end of June.
In the United States, July ADP private payrolls increased by only 44,000 jobs, marking the weakest reading of the year and reinforcing expectations that Friday’s Non-Farm Payrolls (NFP) report will be the key market-moving event.
The U.S. ISM Services PMI remained in expansion territory at 54.1, but higher input costs and weaker employment continued to raise concerns about stagflation.
Crude Oil Update
Crude oil prices traded slightly lower during the session, with WTI down 0.28% and Brent crude easing 0.13%.
Market participants continued to monitor negotiations involving Iran and Oman over the Strait of Hormuz. Reports suggest discussions include a new shipping arrangement that could significantly impact maritime traffic and regional energy trade. Investors are also assessing recent comments from U.S. President Donald Trump regarding oil prices and geopolitical developments.
Market Outlook
Market sentiment is expected to remain driven by U.S. economic data, including weekly jobless claims, wholesale sales, and the Global Supply Chain Pressure Index. Investors will also closely watch speeches from Federal Reserve officials and Friday’s U.S. Non-Farm Payrolls report, which could influence expectations for interest rates and set the near-term direction for metals, energy, and broader commodity markets.