MARKET OUTLOOK - Base Metals Trade Mixed as Dollar Strength Hits Market

Forex - Base metals exhibited a generally mixed trend, as the strengthening US dollar exerted pressure on commodities. Rising US Treasury yields supported the dollar, with the 10-year US Treasury reaching its highest level in seven months last week.

On the London Metal Exchange (LME), three-month copper rose by 0.1% to $8,989.5 per ton, supported by tight supply in copper concentrate. Leading copper smelters in China reached an agreement to expect lower processing and refining fees for copper concentrate in the first quarter of 2025 compared to this quarter.

An analyst commented, "Copper prices are fluctuating as the year-end approaches. Many businesses are busy closing their commercial books, and spot trading is weak."

On the Shanghai Futures Exchange (SHFE), the January copper contract was traded at 74,210 yuan per ton ($10,167.29), down 0.2% at the close of morning trading in Asia.

On a weekly basis, copper inventories in SHFE warehouses increased by 4.7% to 74,172 tons on December 27. However, this level marked the lowest in the last 10 months.

On the LME, aluminum traded at $2,548 per ton, down 0.3%; nickel at $15,450 per ton, up 0.1%; zinc at $3,053.5 per ton, up 0.4%; tin at $29,200 per ton, up 0.1%; and lead at $1,960 per ton, down 0.3%.