Market Overview: Mixed Performance of Base Metals on SHFE as Strong Dollar Limits Gains

In the Forex market, basic metal prices at the Shanghai Futures Exchange (SHFE) exhibited mixed trends, supported somewhat by positive macroeconomic news from China, although a strong dollar index limited the rise. Analysts pointed out that recent financial meetings in China have implemented proactive fiscal policies. The Ministry of Finance announced on Tuesday that China will increase its budget deficit ratio by 2025, intensify fiscal spending, and accelerate expenditures. Meanwhile, the US dollar index is hovering near its two-year high of 108.43, reached last Thursday. At the SHFE, the January copper contract was traded at 74,220 yuan/ton (10,168.66 dollars), marking a 0.2% increase during the Asian morning session's close at 06:30 UTC. Aluminum at the SHFE decreased by 0.5% to 19,815 yuan/ton, lead fell 0.1% to 17,315 yuan/ton, tin dropped 0.1% to 244,680 yuan/ton, while nickel increased by 0.6% to 126,240 yuan/ton, and zinc rose by 0.6% to 25,515 yuan/ton. The London Metal Exchange (LME) will be closed for the holiday.