Most base metals start 2025 higher on China optimism

By Violet Li and Mei Mei Chu

SHANGHAI, Jan 2 (Reuters) - Most base metals rose on Thursday, the first trading session of 2025, buoyed by expectations of more proactive Chinese policies to promote growth, although gains were capped by a stronger U.S. dollar.

Chinese President Xi Jinping said on Tuesday that the country's gross domestic product was expected to exceed 130 trillion yuan ($17.8 trillion) in 2024. He also said the country would implement more proactive policies to promote growth in 2025.

The dollar kicked off 2025 on the front foot after a strong year of gain against most currencies as investors pondered U.S. interest rates staying higher for longer.

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.

"On the macroeconomic side, 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 capped gains in copper prices," a trader said.

Three-month copper on the London Metal Exchange (LME) was up 1.1% at $8,861 per metric ton, as of 0332 GMT.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 slid 0.6% to 73,370 yuan ($10,051.79) a ton by the end of Asia morning trade.

Markets in both London and Shanghai were closed on Wednesday for a holiday.

LME aluminium CMAl3 edged up 0.6% at $2,565 a ton, nickel CMNI3 rose 0.9% to $15,465, zinc CMZN3 gained 1.2% to $3,013, tin CMSN3 fell 0.8% to $28,855, while lead CMPB3 was 0.5% higher at $1,961.

SHFE aluminium SAFcv1 gained 0.5% to 19,885 yuan a ton, nickel SNIcv1 rose 0.1% to 124,630 yuan, zinc SZNcv1 fell 0.2% to 25,265 yuan, lead SPBcv1 gained 0.3% to 16,810 yuan, and tin SSNcv1 edged down 0.8% at 244,110 yuan.

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($1 = 7.2992 Chinese yuan)

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

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

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