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Copper rises after sell-off, firmer dollar caps gains



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BEIJING, July 17 (Reuters) -Copper and most other metals in London rose on Wednesday after a sell-off in the previous session, although gains were limited by a firmer U.S. dollar.

Three-month copper on the London Metal Exchange CMCU3 was up 0.3% at $9,694.50 per metric ton, as of 0141 GMT, after a 1.5% drop on Tuesday.

The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 slid 0.8% to 78,740 yuan ($10,835.28) a ton.

Weak demand in top consumer China has been a key reason behind the recent fall in prices, although supply issues mostly on the mining side have lent some support to the market.

Market participants were awaiting the third plenum that started on Monday to outline efforts to promote advanced manufacturing, manage a vast property crisis and boost domestic consumption.

The dollar rose after a reading of U.S. retail sales proved to be firmer than expected, but was still soft enough to keep expectations intact for a Federal Reserve rate cut this year.

A stronger dollar makes it more expensive to buy the greenback-priced commodity.

LME aluminium CMAL3 climbed 0.5% to $2,417 a ton, zinc CMZN3 increased 0.4% to $2,892, lead CMPB3 climbed 0.2% to $2,189, nickel CMNI3 rose 0.3% to $16,645, while tin CMSN3 slid 0.4% to $33,045.

SHFE aluminium SAFcv1 shed 0.4% to 19,805 yuan a ton, nickel SNIcv1 declined 0.5% to 132,870 yuan, zinc SZNcv1 fell 1.2% to 24,040 yuan, while lead SPBcv1 was up 0.3% at 19,785 yuan and tin SSNcv1 nudged 0.1% up to 273,440 yuan.

The SHFE said on Tuesday it is seeking market opinions as it considers launching nickel, zinc, lead, tin and alumina options contracts.


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($1 = 7.2670 Chinese yuan)



Reporting by Siyi Liu and Mei Mei Chu; Editing by Subhranshu Sahu

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