Metals Rise as Investors Eye China’s Economic Outlook for 2025
Industrial metals gained on the first trading day of the year, driven by positive manufacturing data from China and hopes for stimulus.
Metals, China, Copper, Zinc, Nickel, Aluminum, Manufacturing
Shanghai: So, it looks like industrial metals are off to a good start this year! They jumped up on the first trading day, thanks to a private survey showing that manufacturing in China is expanding. Investors are also keeping an eye on what kind of stimulus Beijing might roll out in 2025.
Copper, for instance, shot up more than 1% in London. It had been struggling a bit, closing at its lowest since March just before the New Year break. Other metals like zinc, nickel, aluminum, and lead also saw some nice gains. The Caixin manufacturing index in China stayed above 50 for the third month in a row, which is a good sign, even if it dipped a bit from last month.
Last year, the LMEX Index, which tracks six metals on the London Metal Exchange, ended with a modest gain of about 4%. It seems like softer demand from China was balanced out by some supply issues, like falling inventories and mine shortages. This year, everyone’s curious to see if China’s struggling property sector will bounce back, as it’s a big part of the demand for metals. Plus, there’s the added uncertainty from trade tensions during Trump’s presidency.
As of now, copper is trading at $8,866.50 a ton on the LME, which is a 1.1% increase. Zinc is also up by 1.2%, sitting at $3,014 a ton after a solid 12% rise last year. Nickel is following suit, climbing 1% to $15,480 a ton.
Iron ore had a bit of a rollercoaster ride too. It dropped initially but then bounced back, rising 0.8% to $101.75 a ton in Singapore. Last year was tough for iron ore, with a 28% drop, the worst since 2015, mainly due to China’s property crisis affecting demand.