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Base metals mixed, copper supported by tight supply

Base metal costs 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). increased 0.7% to $9,014 per metric lot by 0406 GMT.

China's top copper smelters settled on cost assistance for. copper concentrate processing treatment and refining charges in. the very first quarter of 2025 at $25 per metric heap and 2.5 cents. per pound, down 28.6% from the fourth-quarter guidance of $35. per heap and 3.5 cents per pound, reflecting a sticking around scarcity. of copper concentrate.

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

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

The hawkish tone from the Federal Reserve relating to. possible interest rate cuts next year has kept the dollar. strong. Overall, unpredictabilities in the macroeconomic environment. have postured upward restraint on metal rates, Citic Futures said. in a note.

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

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

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

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

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(source: Reuters)