MARKET OUTLOOK - Most Base Metals Start 2025 on a High Note Driven by Chinese Optimism

Forex - Most base metals rose today, the first trading day of 2025, on expectations that China will adopt more proactive policies to support growth, although gains were limited by a strengthening U.S. dollar.
Chinese President Xi Jinping stated on Tuesday that the country's gross domestic product is expected to exceed 130 trillion yuan (17.8 trillion dollars) in 2024. He also mentioned that the country would implement more proactive policies to promote growth in 2025.
The dollar started 2025 strong against most currencies following a year of solid gains, as investors believe U.S. interest rates will remain high for an extended period.
Rising yields on U.S. Treasury bonds supported the dollar, with the yield on the 10-year U.S. bond reaching a seven-month high last week.
A trader noted, “From a macroeconomic perspective, the U.S. Federal Reserve has maintained high interest rates, and the U.S. dollar index has reached a two-year high, both of which have limited the increases in copper prices.”
On the London Metal Exchange (LME), three-month copper rose 1.1% to $8,861 per ton at 06:32 GMT.
On the Shanghai Futures Exchange (SHFE), the January copper contract fell 0.6% to 73,370 yuan per ton (10,051.79 dollars) at the end of Asian morning trading.
Both London and Shanghai markets were closed yesterday due to holiday.
On the LME, aluminum traded up 0.6% at $2,565 per ton, nickel rose 0.9% to $15,465 per ton, zinc increased by 1.2% to $3,013 per ton, while tin fell 0.8% to $28,855 per ton, and lead rose 0.5% to $1,961 per ton.
On the SHFE, aluminum rose 0.5% to 19,885 yuan per ton, nickel increased by 0.1% to 124,630 yuan per ton, zinc decreased by 0.2% to 25,265 yuan per ton, lead rose by 0.3% to 16,810 yuan per ton, and tin fell 0.8% to 244,110 yuan per ton.