Copper inches higher as dollar rally pauses; China demand woes weigh
Nov 19 (Reuters) -Copper prices drifted higher on Tuesday as the dollar rally took a breather, although concerns over China demand and potential U.S. tariffs continued to weigh on the market.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.3% to $9,103.5 per metric ton by 0140 GMT. The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 gained 0.5% to 74,170 yuan ($10,254.25) a ton.
The U.S. dollar saw a pullback as traders locked in profit after a rally that lifted the currency to a one-year high. A weaker dollar makes greenback-priced metals cheaper for other currency holders. USD/
Meanwhile, top metals consumer China experienced slowing economic growth. The government has been implementing supportive policies to revive the economy, but these measures have so far failed to boost investor confidence.
U.S. President-elect Donald Trump has pledged to end China's most-favored-nation trading status and impose tariffs on Chinese imports in excess of 60% - much higher than those imposed during his first term.
Last week, China's finance ministry said it would reduce or cancel export tax rebates for aluminium and copper products.
LME aluminium CMAL3 rose 0.3% to $2,616, nickel CMNI3 decreased 0.2% to $15,700, zinc CMZN3 added 0.1% to $2,955, lead CMPB3 was down 0.1% at $1,989 and tin CMSN3 firmed 0.7% at $29,245.
SHFE aluminium SAFcv1 eased 0.2% to 20,515 yuan a ton, nickel SNIcv1 rose 0.8% to 124,800 yuan, tin SSNcv1 advanced 1% to 243,230 yuan, lead SPBcv1 was up 0.2% to 16,770 yuan and zinc SZNcv1 added 0.9% at 24,680 yuan.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips
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