Market Outlook: Base Metals Rise on Positive Domestic Economic News in China at SHFE

Most base metals on the Shanghai Futures Exchange (SHFE) rose due to positive macroeconomic news from the Chinese government. According to a statement from the Ministry of Finance yesterday, China plans to increase fiscal support for consumption by raising pensions and health insurance subsidies next year and expanding trade-in programs for consumer goods. Meanwhile, reports indicate that Chinese officials have agreed to issue 3 trillion yuan (approximately $411.04 billion) worth of special treasury bonds next year.

On the SHFE, the January copper contract rose by 0.2% to 74,080 yuan per ton ($10,149.61) at 06:30 AM GMT during the closing of Asian morning trading. Aluminum traded at 19,880 yuan per ton, up 0.2%; nickel at 125,230 yuan per ton, up 0.6%; zinc at 25,420 yuan per ton, up 1.2%; lead at 17,385 yuan per ton, down 0.2%; and tin at 245,550 yuan per ton, up 0.6%. The London Metal Exchange (LME) will be closed today for Christmas and tomorrow for Boxing Day.