SHFE non-ferrous metal futures drop on week

By the end of the daytime trading session on Friday, the SHFE's most-traded nickel contract for January 2026 delivery had dropped by 2.8% to close Yuan 114,050/tonne ($16,040/t), marking its lowest level in five years. The most-traded aluminum and copper contracts also fell, slipping by 2.3% and 1.4% on week to finish at Yuan 21,340/t and Yuan 85,660/t, respectively.

The downward movement in futures prices was linked to diminishing expectations for a U.S. Federal Reserve interest rate cut in December, as well as weakening seasonal demand in China, market watchers said. 

According to data released on Thursday by the U.S. Bureau of Labor Statistics, non-farm payrolls increased by 119,000 in September, rebounding from a decline of 4,000 jobs in August and outperforming market forecasts. The stronger-than-expected labor data reduced the likelihood of a December rate cut, pressuring global commodity markets and SHFE non-ferrous futures prices on Friday.

Meanwhile, domestic demand for non-ferrous metals in China has softened further, with consumption in the real estate, household electrical appliance, and photovoltaic sectors slowing in recent weeks. This slackening of demand placed additional downward pressure on futures prices.

During this week, the SHFE's warehouse inventories moved in different directions. As of November 21, aluminum and copper stocks in the SHFE-bonded and standard warehouses had risen by 7.7% and 1.1% on week to 123,716 tonnes and 110,603 tonnes, respectively. In contrast, nickel inventories had declined by 1.9% from a week earlier to 39,795 tonnes.

Written by Iris Pang, pangjunyu@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com