(Bloomberg) -- Industrial metals traded mixed, with aluminum and iron ore climbing after China rolled out more support for the world’s second-biggest economy, while copper slipped ahead of a key Federal Reserve speech.

Beijing on Tuesday made a rare mid-year adjustment to its budget to allow for more spending, a move that underlines the top leadership’s focus on sustaining the recovery. The plan includes issuing 1 trillion yuan ($137 billion) of additional sovereign bonds this quarter, with the funds earmarked for disaster relief and construction.

Steelmaking staple iron ore rallied as much as 1.6%, rising for a third day. Aluminum and zinc climbed more than 1% on the London Metal Exchange before paring gains, while copper drifted lower.

Metals had softened in October largely on concerns over fading demand outside China. Activity inside the world’s biggest buyer of industrial commodities has proved a relative bright spot, and further Chinese stimulus will support that dynamic.

Read More: Steel Demand Will Remain Subdued for Rest of the Year, SSAB Says

Adding to signs that President Xi Jinping is keen to shore up the economy and financial markets, he paid his first known visit to the headquarters of the People’s Bank of China on Tuesday.

A speech by Federal Reserve Chairman Jerome Powell later on Wednesday will be closely watched for clues on the US rate path. Anything that points to more monetary tightening is likely to be negative for copper, as higher interest rates squeeze manufacturers and consumers.

There were also fresh signs that high borrowing costs are contributing to a slowdown in the electric-vehicle industry, which is a major emerging driver of copper demand. Shares in battery maker LG Energy Solution Ltd. plunged after it forecast lower sales growth in 2024, and General Motors Co. said on Tuesday that it is rethinking growth plans as sales of plug-ins have been slower than anticipated. 

Aluminum rose 0.8% to $2,209 a ton on the London Metal Exchange as of 11:46 a.m. in London, after closing at the lowest level since August on Monday. Zinc climbed 0.7% and copper fell 0.3% to $8,025 a ton. Iron ore increased 1% to $117.30 a ton in Singapore.

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