MARKET VIEW - Base metals exhibit mixed trends, copper supported by tight supply

Forex - Copper prices, while supported by supply tightness in copper concentrate, showed mixed movement as strong dollar gains limited their range. On the London Metal Exchange (LME), three-month copper rose by 0.7% to $9,014 per ton as of 07:06 UTC. Leading copper smelting plants in China agreed on smelting and refining charges for copper concentrate at $25 per ton and 2.5 cents per pound for the first quarter of 2025, representing a 28.6% decrease from the fourth quarter's expectations of $35 per ton and 3.5 cents per pound. The US dollar index hovered near its highest level in two years at 108.43 last Thursday, trading at 108.14 as of 07:06 UTC. One analyst noted, “The Fed's hawkish tone regarding potential interest rate cuts next year has kept the dollar strong. Overall, uncertainties in the macroeconomic environment have created an upward constraint on metal prices.” On the Shanghai Futures Exchange (SHFE), the January copper contract advanced by 0.1%, trading at 74,200 yuan per ton ($10,168.14) at the close of the Asian morning session at 06:30 UTC. On the LME, aluminum traded down 0.6% at $2,548 per ton, nickel up 0.6% at $15,565 per ton, zinc down 0.4% at $3,035 per ton, tin up 0.4% at $28,935 per ton, and lead down 1.3% at $1,957 per ton.