Metals sink as China exchange told to rip put high-speed servers

Metals prices were broadly steadying already on Thursday after powerful gains at the start of 2026

• Chinese regulators clamp down on high-frequency trading in metals markets
• Copper, zinc, and aluminum prices fell in Shanghai and London after the news
• High-frequency traders ordered to remove servers from major Chinese exchanges

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Metals fell at the end of a dramatic week, as news of a Chinese clampdown down on high-frequency trading cooled sentiment after frenzied activity in mainland futures that fueled global price gains.

Regulators have ordered bourses including the Shanghai Futures Exchange — the main metals platform — to remove servers operated by high-frequency traders from their data centers, according to people familiar with the matter. Copper, zinc and aluminum all fell in Shanghai, as well as on the London Metal Exchange, which sets global benchmark prices for the commodities.

Metals markets roared higher earlier this week — with copper and tin notching records in London — amid a broad wave of investor enthusiasm for real assets. As part of that, there has been a big spike in trading volumes on SHFE over the past month amid bullish sentiment across Chinese financial markets.

“High‑frequency trading disrupts the rhythm of the market and amplifies price fluctuations,” said Jia Zheng, head of trading at Shanghai Soochow Jiuying Investment Management Co. The latest measures could “lower intraday trading volumes and reduce volatility, but won’t change the market’s fundamental price direction,” she said.

SHFE has told brokers they need to get equipment for high-speed clients out by the end of the month, while other clients need to do so by April 30, the people said. High-frequency traders locate servers as close as possible to exchange data centers to execute trades as quickly as possible to beat rivals.

Regulatory suspicion around high-frequency trading in China is not new and reflects a wider approach by authorities that seeks to manage volatility in futures markets. Officials have threatened to hike fees for high-frequency traders, although so far they haven’t done so.

Metals prices were broadly steadying already on Thursday after powerful gains at the start of 2026. Tin was up 35% year-to-date at one stage this week, while copper surged to a record above $13,000 a ton, meeting bullish expectations. The all-in LMEX Index of six base metals rose just to short of a record on Wednesday.

Still, high metals prices risk putting off buyers, and there have already been signs of pushback in the key market of China, where physical demand has been relatively week. Expensive materials can also prompt manufacturers to switch to alternatives, as shown by makers of solar panels trying to substitute silver after its price spike.

For copper, a major uncertainty remains around US import tariffs this year, with the White House due to make a decision by mid-year. Traders have pushed big volumes to the US ahead of any levies, and analysts including Goldman Sachs Group Inc. have said they expect global prices to retreat from elevated levels later this year.

On SHFE, copper closed the morning session down 1.2% to 101,330 yuan ($14,545), after an earlier gain of as much as 0.6%, while tin fell as much as 8.3%. All six main metals on the LME fell, with copper down 1% to $12,978 a ton by 12:59 p.m. Shanghai time, while nickel fell 3% and tin shed 2%.

The move to curtail high-frequency trading affects other platforms, including the Guangzhou Futures Exchange that hosts commodities including lithium, platinum and palladium. Lithium also fell sharply on Friday.