SHANGHAI: Most base metal prices rose on the last trading day of 2024, with copper posting a 4.2% year-on-year increase, driven by encouraging factory activity data from China that outweighed pressure from a stronger US dollar.
China’s manufacturing activity expanded for a third straight month in December but at a slower pace, an official factory survey showed, suggesting fresh stimulus measures are supporting the world’s second-largest economy.
The dollar remained strong and was set for significant gains in 2024 as investors prepared for fewer US rate cuts next year and the incoming Trump’s administration policies.
Rising US Treasury yields have been a boost for the dollar, with the key 10-year note hitting a more than seven-month high last week.
A stronger dollar makes it more expensive for holders of other currencies to buy greenback-priced commodities.
Three-month copper on the London Metal Exchange (LME) was up 0.1% at $8,918 per metric ton by 0336 GMT, compared with the closing price of $8,559 on the last trading day of 2023.
“With the year’s end approaching, copper consumption is trending lower seasonally, while stocks have increased slightly,” analysts at Jinrui Futures said.
On a week-on-week basis, copper inventories in SHFE warehouses climbed 4.7% to 74,172 tons on Dec. 27. However, the level was the lowest in 10 months.
London copper dips as market awaits China data
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) slid 0.7% to 73,690 yuan ($10,097.15) a ton by the close of Asia morning trade.
LME aluminium edged up 0.1% at $2,552.5 a ton, nickel rose 0.5% to $15,495, zinc gained 0.6% to $3,036.5, tin fell 0.7% to $29,085, while lead was 0.1% lower at $1,948.
SHFE aluminium declined 0.2% to 19,805 yuan a ton, nickel fell 0.1% to 124,420 yuan, zinc gained 0.2% to 25,345 yuan, lead slid 0.5% to 16,740 yuan, and tin edged up 0.3% at 245,390 yuan.
Comments