Supply glut, cautious demand, and fading cost support drag the benchmark contract down RMB 205/mt in the week of March 30 – April

Iran’s parliamentary National Security Committee passed a bill to charge fees for vessels transiting the Strait of Hormuz, planning to establish financial arrangements and a fee collection system in the local currency, the rial, and explicitly prohibiting the passage of US and Israeli vessels, as well as vessels from countries involved in imposing unilateral sanctions on Iran. According to CNBC, meanwhile, oil tankers have already begun rerouting to waters near Larak Island in exchange for guarantees of safe passage, and a de facto "toll station" has already taken shape.

[SMM Nickel Flash] Iranian Parliament Approves Bill to Levy Transit Fees on the Strait of Hormuz, Payable in Iran’s Local Currency According to CCTV News, on March 30 local time, the National Security Committee of the Iranian Parliament passed a bill proposing to charge fees to vessels transiting the Strait of Hormuz. The plan includes implementing financial arrangements and a fee-charging system in Iranian rials; prohibiting US and Israeli vessels from passing through the Strait of Hormuz; maintaining Iran and its armed forces’ dominant position; barring passage by countries participating in unilateral sanctions against Iran; and cooperating with Oman to formulate the relevant legal framework.

[SMM Morning Meeting Summary: Dovish Remarks by the US Fed Drove Zinc Prices Higher] Overnight, LME zinc recorded a bullish candlestick, with the 20-day daily average above acting as resistance. Overnight, dovish remarks by the US Fed boosted market sentiment, while LME Cash-3M shifted to a backwardation structure......

The US Treasury (OFAC) has issued new licenses lifting major sanctions on Venezuela’s gold and mining industries, including state-owned miner Minerven. Following the 2026 political shift in Caracas, this move allows companies to resume investments, provide technical services, and sign contracts. The policy aims to secure global access to Venezuela's vast reserves of gold, bauxite, and rare minerals essential for high-tech supply chains.

[Overnight, LME Aluminum and SHFE Aluminum Edged Up Slightly, but Aluminum Prices Faced Short-Term Pressure at High Levels] Continued destocking in LME inventory provided bottom support for LME aluminum, but amid tightening fund liquidity and profit-taking by bulls, upward momentum remained insufficient, and the backwardation structure weakened somewhat. China’s social inventory rose to a high for the same period in nearly five years, and the inventory buildup cycle had yet to end, with high inventory and weak spot fundamentals jointly weighing on upward momentum. The divergence between domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and prices were mainly under pressure in the short term.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,093.5/mt. Early in the session, the center of copper prices gradually moved lower and fell to $11,754/mt, then fluctuated upward to a high of $12,228.5/mt, before seeing wide swings and finally closing at $12,211.5/mt, down 1.05%. Trading volume reached 46,900 lots, open interest stood at 288,600 lots, an increase of 239 lots from the previous trading day. Overnight, the most-traded SHFE copper 2605 contract opened at 92,500 yuan/mt and fell to 91,820 yuan/mt early in the session. The center of copper prices then fluctuated upward to a high of 95,530 yuan/mt, before fluctuating rangebound and finally closing at 94,920 yuan/mt, down 0.91%. Trading volume reached 153,000 lots, open interest stood at 197,000 lots, down 6,302 lots from the previous trading day, mainly due to long liquidation.

Recently, Joint Circular No. 00156 of the Ministry of Finance and the Ministry of Mines of the DRC / Cabinet of the Ministry of Mines / 2026 and Cabinet of the Ministry of Finance / 2026, concerning regulatory measures to standardize control over deviations in the detection of refined cobalt content in exported cobalt hydroxide under the quota system framework of the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets in the DRC, is translated as follows: The English translation of the above text is:

After a strong start, the price of gold slipped twice to around $5,060 during this trading week. Now, it appears that gold prices might manage to stay just above $5,100 heading into the weekend, continuing the persistent sideways movement of the past five weeks.

Geopolitical tensions, and concerns about fiscal policy and central banks, have driven the gold price to where it is today.