Market Outlook: Expectations for Additional Fiscal Stimulus from China Boost Base Metal Prices

Forex - As metal prices rise, LME three-month copper increased by 1.4% to $9,220 per metric ton, while LME three-month aluminum rose by 0.1% to $2,608.50 per ton. Industrial metals gained value following signals that China would implement more aggressive fiscal stimulus measures by 2025, bolstering demand expectations. The country's November inflation data indicated that internal demand remained persistently weak due to a struggling real estate market. The Politburo pledged on Monday to implement a more proactive fiscal policy, increase internal demand, stabilize the housing and real estate markets, and ease its official stance on monetary policy. Market observers note that China's recent stimulus package has largely failed to meet expectations and has diminished metal demand. Investor appetite for industrial metals has been further suppressed by a strengthening U.S. dollar and President-elect Trump's threats of tariffs.