Updates prices

By Pratima Desai

LONDON, Nov 13 (Reuters) -Copper prices hit a two-month low on Wednesday as the dollar climbed after the release of key US inflation data while weak demand prospects in top consumer China also dominated the mood.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was down 1.1% at $9,046 a metric ton at 1700 GMT, after hitting an earlier session low at $9,019, a drop of more than 7% since the U.S. presidential election last week.

"The dollar shows no signs of giving up its gains and China stimulus hasn't done much for manufacturing, real estate or growth," a copper trader said.

U.S. consumer prices rose as expected in October, but progress toward bringing inflation down has slowed since mid-year, which could result in fewer rate cuts and boost the dollar.

Traders also cited Federal Reserve official Lorie Logan saying, "If we cut too far, past neutral, inflation could reaccelerate and the (Fed) could need to reverse direction" as another reason for the higher dollar on Wednesday.

A higher U.S. currency makes dollar-priced metals more expensive for holders of other currencies, potentially subduing demand and weighing on prices.

Disappointment with Chinese stimulus in recent months combined with the likelihood of hefty U.S. tariffs on imports after Donald Trump's presidential election victory are expected to keep copper and other industrial metals under pressure.

Trump has threatened 60% tariff on goods coming into the United States from China, much higher than the levies of 7.5% to 25% he imposed in his first term.

"We see a new bear risk - expanded China-centred tariffs, imposed by the incoming Republican party," said Liberum analyst Tom Price. "Tariffs were bearish for the commodity world in 2018-19. They will be bearish again."

An indication of muted demand in China is the Yangshan premium SMM-CUYP-CN, a closely watched indicator of China's appetite for importing copper, which is down 30% to around $46 a ton since rising to nearly $70 in early October.

Overall, subdued demand globally has been the main theme in the industrial metals market for most of this year. It is reflected in the persistent discounts for the cash over the three-month LME contracts CMCU0-3, CMAL0-3, CMZN.

Aluminium CMAL3 fell 1.3% to $2,530 a ton, zinc CMZN3 gained 1.3% to $2,976, lead CMPB3 slipped 0.7% to $2,008, tin CMSN3 retreated 2.1% to $29,585 and nickel CMNI3 shed 0.9% to $15,745.

Reporting by Pratima Desai; editing by Shreya Biswas, Jane Merriman and Vijay Kishore

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