Base metals rebound

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HANOI- Base metals prices were largely trading higher on Monday, boosted by dip-buying from physical consumers, but a strong dollar and poor Chinese data capped further gains.

Three-month copper on the London Metal Exchange (LME) rose 0.3 percent to $9,027 per metric ton, aluminum rose 1.4 percent to $2,687.50 and nickel increased 0.8 percent to $15,665.

LME zinc advanced 0.9 percent to $2,973, lead was up 0.7 percent at $1,971 and tin edged up 0.3 percent at $28,835.

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The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) was nearly flat at 73,770 yuan ($10,196.69) a ton.

SHFE aluminum fell 1.3 percent to 20,525 yuan a ton, nickel rose 0.9 percent to 124,500 yuan, tin declined 0.6 percent to 240,670 yuan, lead rose 0.1 percent to 16,795 yuan while zinc was flat at 24,680 yuan.

“Consumers are attracted to buying because prices fell to a 2-month low. It is quite natural, but will die soon because, specs, not consumers, set the trend for prices. I would expect specs to sell after dip-buying fades,” said Sandeep Daga, a director at Metal Intelligence Centre.

Daga expected LME copper could fall to as low as $7,000 a ton in the second quarter of 2025 due to the dollar strength, Donald Trump’s policies that will likely negatively impact sentiment, and as the Chinese stimulus impact fades.

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