Global Metals Prices Plummet Amid Escalating Iran Conflict and Strong Labor Market

Metals prices declined broadly on July 24, as base metals fell across the board. The Shanghai Futures Exchange (SHFE) tin and copper contracts both dropped over 1%, while SHFE silver and platinum futures fell nearly 5%. On the ferrous side, iron ore, rebar, HRC, and stainless steel all fell, except for coking coal, which remained stable.

The US dollar index slipped to 101.42 as the threat of escalating conflict in Iran pushed up oil prices, increasing expectations that the Federal Reserve may hike interest rates soon. The two-year Treasury yield rose about 4 basis points to around 4.34%, its highest level since early 2025.

The number of Americans filing new claims for unemployment benefits fell significantly last week, indicating stability in the US labor market and keeping pressure on Fed officials to focus on curbing inflation. The US Labor Department reported that initial jobless claims fell by 22,000 to 187,000, below expectations of 212,000.