Copper gains 4.2% in 2024 as positive China data counters strong dollar

By Violet Li and Mei Mei Chu

SHANGHAI, Dec 31 (Reuters) - Most base metal prices rose on the last trading day of 2024, with copper posting a 4.2% year-on-year increase, driven by encouraging factory activity data from China that outweighed 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 prepared for fewer U.S. rate cuts next year and the incoming Trump's administration policies.

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) was up 0.1% at $8,918 per metric ton by 0336 GMT, compared with the closing price of $8,559 on the last trading day of 2023.

"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 in 10 months.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 slid 0.7% to 73,690 yuan ($10,097.15) a ton by the close of Asia morning trade.

LME aluminium CMAl3 edged up 0.1% at $2,552.5 a ton, nickel CMNI3 rose 0.5% to $15,495, zinc CMZN3 gained 0.6% to $3,036.5, tin CMSN3 fell 0.7% to $29,085, while lead CMPB3 was 0.1% lower at $1,948.

SHFE aluminium SAFcv1 declined 0.2% to 19,805 yuan a ton, nickel SNIcv1 fell 0.1% to 124,420 yuan, zinc SZNcv1 gained 0.2% to 25,345 yuan, lead SPBcv1 slid 0.5% to 16,740 yuan, and tin SSNcv1 edged up 0.3% at 245,390 yuan.

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($1 = 7.2981 Chinese yuan renminbi)

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

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

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