Copper inches higher as dollar rally pauses; China demand woes weigh
Adds comments and updates prices
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 0.5% to $9,114.5 per metric ton by 0320 GMT. The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 gained 0.6% to 74,250 yuan ($10,266.44) a ton.
The U.S. dollar pulled back 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.
"Most factors continue to be bearish for the copper market. LME copper prices will likely trade between $8,900 and $9,200 in the next six weeks," Ed Meir, consultant at brokerage Marex said.
"For next year, I see $8,000 on the downside and $10,500 on the upside."
Last week, China's finance ministry said it would reduce or cancel export tax rebates for aluminium and copper products.
LME aluminium CMAL3 rose 0.7% to $2,626, nickel CMNI3 steadied at $15,730, zinc CMZN3 added 0.6% to $2,968.5, lead CMPB3 was up 0.4% at $1,998 and tin CMSN3 firmed 0.8% at $29,260.
SHFE aluminium SAFcv1 was flat at 20,550 yuan a ton, nickel SNIcv1 rose 0.5% to 124,530 yuan, tin SSNcv1 advanced 1% to 243,080 yuan, lead SPBcv1 was up 0.2% to 16,770 yuan and zinc SZNcv1 added 0.9% at 24,775 yuan.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips
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