METALS-Base metals trade mixed as positive China data counters strong dollar

By Violet Li and Mei Mei Chu

SHANGHAI, Dec 31 (Reuters) - Base metals were mixed on Tuesday, the last trading session of 2024, as positive China factory activity data countered pressure from a stronger U.S. dollar.

China's manufacturing activity expanded for a third straight month in December but at a slower pace, an official factory survey showed, suggesting fresh stimulus measures are supporting the world's second-largest economy.

The dollar remained strong and was set for significant gains in 2024 as investors anticipated fewer U.S. rate cuts next year and new policies from the incoming Trump administration.

Rising U.S. Treasury yields have been a boost for the dollar, with the key 10-year note US10YT=RR hitting a more than seven-month high last week.

A stronger dollar makes it more expensive for holders of other currencies to buy greenback-priced commodities.

Three-month copper on the London Metal Exchange (LME) rose 0.3% to $8,934 per metric ton by 0200 GMT. It has risen 4.38% so far this year.

"With the year's end approaching, copper consumption is trending lower seasonally, while stocks have increased slightly," analysts at Jinrui Futures said.

On a week-on-week basis, copper inventories in SHFE warehouses climbed 4.7% to 74,172 tons on Dec. 27. However, the level was the lowest seen in the past 10 months.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 slid 0.5% to 73,810 yuan ($10,115.39) a ton.

LME aluminium CMAl3 was relatively unchanged at $2,551 a ton, nickel CMNI3 edged up 0.3% to $15,465, zinc CMZN3 gained 0.2% to $3,024, tin CMSN3 was down 0.3% at $29,200, while lead CMPB3 was 0.1% lower at $1,946.

SHFE aluminium SAFcv1 slipped 0.1% to 19,765 yuan a ton, nickel SNIcv1 fell 0.2% to 124,190 yuan, zinc SZNcv1 fell 0.2% to 25,250 yuan, lead SPBcv1 slid 0.6% to 16,730 yuan, and tin SSNcv1 edged up 0.6% at 246,180 yuan.

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($1 = 7.2968 Chinese yuan)

(Reporting by Violet Li and Mei Mei Chu; Editing by Subhranshu Sahu)

((Violet.Li@thomsonreuters.com;))

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