Copper climbed more than 1% in London. — Bloomberg
LONDON: Industrial metals rose on the first trading day of the year, with a private survey pointing to an expansion of manufacturing in China and investors weighing the scope for additional stimulus from Beijing in 2025.
Copper climbed more than 1% in London, after closing on Tuesday at the lowest level since March, ahead of the market’s Jan 1 break.
Zinc, nickel, aluminium and lead also gained.
In China, the Caixin manufacturing purchasing managers index held above 50 for a third month in December, although it was down month-on-month, pointing to a bumpy recovery of the top metals-consuming economy.
The LMEX Index of six metals on the London Metal Exchange closed out 2024 with a modest gain of about 4%, as softer Chinese demand was offset by flashes of supply stress on falling inventories and mine supply shortages.
For the year to come, investors are focused on whether there’ll be a recovery in the nation’s embattled property sector, a key demand pillar for metals, as well as the potential impact of trade frictions from Donald Trump’s US presidency.
Copper traded 1.1% higher at US$8,866.50 a tonne on the LME at 11:09am in Shanghai.
Zinc gained 1.2% to US$3,014 a tonne, following a 12% advance last year, while nickel was up 1% at US$15,480 a tonne.
Iron ore reversed an early drop to climb 0.8% to US$101.75 a tonne in Singapore.
The steel-making staple collapsed 28% last year, its worst annual loss since 2015, as China’s property crisis hurt demand and miners boosted cargoes. — Bloomberg
