Base metal prices fell on Friday, ending a week marked by volatility, after China tightened its control over automated trading, dampening investor sentiment.
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The decline followed a period of frenzied activity in futures contracts on mainland China, which had previously pushed global prices higher, according to Bloomberg.
Copper, zinc, and aluminum prices dropped in Shanghai as well as on the London Metal Exchange (LME), the global benchmark for these commodities.
Metal prices had begun stabilizing by Thursday following strong gains since the start of 2026. During the week, tin prices surged around 35% since the beginning of the year, while copper reached a record level above $13,000 per ton, aligning with prevailing bullish expectations. The LME index, which tracks six base metals, approached its all-time highs on Wednesday.
On the Shanghai Futures Exchange, copper fell 1.2% in the morning session to 101,330 yuan ($14,545), while tin dropped as much as 8.3%.
All six major metals on the LME declined, with copper down 1% to $12,978 per ton, nickel falling 3%, and tin dropping 2%.
The impact of China’s restrictions on high-frequency trading also affected other platforms, including the Guangzhou Futures Exchange, which trades commodities such as lithium, platinum, and palladium. Lithium prices fell sharply on Friday.
Separately, iron ore futures declined as Chinese demand—the world’s largest—cooled due to high prices and limited profit margins, prompting steel mills to pause building new positions.
The most-traded May contract on the Dalian Commodity Exchange fell 0.43% to 812.5 yuan per metric ton ($116.64), having lost 0.25% since the start of the week. Meanwhile, the February benchmark iron ore contract on the Singapore Exchange dropped 0.34% to $106.7 per ton.
Other steel-making inputs also declined, with coking coal and coke down 1.09% and 1.29%, respectively. Steel contracts on the Shanghai Exchange showed mixed performance, with rebar stabilizing and some products rising, while stainless steel saw slight declines.
