Copper extends decline on stronger dollar, China demand concerns
Nov 14 (Reuters) -Copper prices extended declines on Thursday to hit two-month lows, weighed down by a stronger U.S. dollar and concerns about demand from top consumer China.
Three-month copper on the London Metal Exchange (LME) CMCU3 fell 0.5% to $9,004 per metric ton by 0150 GMT, hitting its lowest since early September.
The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 declined 1.5% to 73,600 yuan ($10,169.96) a ton, its lowest since Sept. 12.
The U.S. dollar advanced to one-year high, steered by Donald Trump's victory in last week's presidential election. USD/
A stronger greenback makes dollar-priced metals more expensive for buyers holding other currencies.
"We see copper prices trading lower to $8,500-$9,000 per ton into year-end as likely U.S. trade tariff hikes and weaker-than-expected China stimulus detail so far have weighed on our conviction in a global manufacturing recovery through 2025, with investor positioning length vulnerable to a further unwind," analysts at Citi said in a note.
Trump has vowed to adopt blanket 60% tariffs on U.S. imports of Chinese goods as part of a package of "America First" trade measures.
Investors have also been disappointed by the scale of China's recent stimulus measures to reboot its lacklustre economy. China's property market is one of the largest consumers of base metals.
LME aluminium CMAL3 fell 0.3% to $2,523.5 a ton, nickel CMNI3 added 0.3% to $15,775, zinc CMZN3 decreased 0.8% to $2,958, lead CMPB3 lost 0.2% to $2,004 and tin CMSN3 fell 0.9% to $29,390.
SHFE aluminium SAFcv1 dipped 0.6% to 20,690 yuan a ton, nickel SNIcv1 declined 1% to 124,940 yuan, lead SPBcv1 dropped 0.7% to 17,045 yuan, zinc SZNcv1 edged up 0.5% at 24,800 yuan, while tin SSNcv1 fell 1.9% to 244,970 yuan.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu
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