Base metals mixed, copper supported by tight supply

By Violet Li and Mei Mei Chu

SHANGHAI, Dec 27 (Reuters) - Base metal prices were mixed on Friday, moving within tight ranges with the strong dollar limiting gains, although copper found support from supply tightness in copper concentrate.

The three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.7% to $9,014 per metric ton by 0406 GMT.

China's top copper smelters agreed on price guidance for copper concentrate processing treatment and refining charges in the first quarter of 2025 at $25 per metric ton and 2.5 cents per pound, down 28.6% from the fourth-quarter guidance of $35 per ton and 3.5 cents per pound, reflecting a lingering shortage of copper concentrate.

The charges tend to fall when ore supply declines and rise when more concentrate is available.

Meanwhile, the U.S. dollar index hovered near the two-year high of $108.43 hit last Thursday and was trading at $108.14 at 0406 GMT.

"The hawkish tone from the Federal Reserve regarding potential interest rate cuts next year has kept the dollar strong. Overall, uncertainties in the macroeconomic environment have posed upward restraint on metal prices," Citic Futures said in a note.

A stronger dollar makes it more expensive for other currency holders to buy greenback-priced commodities, thus keeping metals prices under pressure.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 gained 0.1% to 74,200 yuan ($10,168.14) a ton by the close of Asia morning trade session at 0330 GMT.

LME aluminium CMAl3 slid 0.6% to $2,548 a ton, nickel CMNI3 increased 0.6% to $15,565, zinc CMZN3 fell 0.4% to $3,035, tin CMSN3 was up 0.4% at $28,935, while lead CMPB3 was 1.3% lower at $1,957.

SHFE aluminium SAFcv1 decreased 0.2% to 19,765 yuan a ton, nickel SNIcv1 rose 0.1% to 125,900 yuan, zinc SZNcv1 slid 0.8% to 25,265 yuan, lead SPBcv1 fell 2.8% to 16,890 yuan, and tin SSNcv1 edged down 0.3% to 244,010 yuan.

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($1 = 7.2973 Chinese yuan renminbi)

(Reporting by Violet Li and Mei Mei Chu; Editing by Janane Venkatraman and Mrigank Dhaniwala )

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

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