On the initial trading day of 2025, industrial metals experienced a rise, buoyed by a private survey indicating an expansion in China's manufacturing sector and the anticipation of further economic stimuli from Beijing. Notably, copper saw a significant increase of over 1% in London trading. This upward trend was echoed across other metals like zinc, nickel, aluminum, and lead.

The Caixin Manufacturing Purchasing Managers' Index in China remained above the 50-mark threshold for the third consecutive month in December, although it showed a slight decline from the previous month, suggesting a gradual but uneven recovery in the world's leading metal consumer.

Throughout 2024, the London Metal Exchange's LMEX Index, which tracks six major metals, achieved a modest annual gain of around 4%. This was despite a softening in Chinese demand, which was somewhat counterbalanced by sporadic supply constraints due to reduced inventory levels and shortages in mine supply.

Investor focus is now shifting towards the potential recovery in China's troubled property sector, which is crucial for metal demand, and the implications of ongoing trade tensions during Donald Trump’s presidency in the U.S.

In specific figures, copper traded at $8,866.50 per ton, marking a 1.1% rise, while zinc advanced 1.2% to $3,014 per ton, following a notable 12% increase in the previous year. Nickel prices also climbed by 1% to $15,480 per ton.

Iron ore, another key industrial component, overcame an initial decline to rise by 0.8% to $101.75 per ton in Singapore. This follows a sharp 28% decrease over the past year, attributed to weakened demand from China’s property sector downturn and increased supply from miners.

This synopsis outlines the dynamics influencing the metal market as the new year unfolds, highlighting the intricate balance of global economic forces and their impact on commodity prices.