Copper set for second straight monthly fall on demand worries
Nov 29 (Reuters) -Copper prices rose on Friday but were on track for a second straight monthly fall, pressured by demand concerns amid possible U.S. tariffs and a lack of aggressive Chinese stimulus.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.5% to $9,044.50 per metric ton by 0236 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 0.2% to 74,010 yuan ($10,227.89) a ton.
The dollar eased, making greenback-priced metals cheaper to holders of other currencies.
However, both contracts were heading for a second straight monthly loss on concerns that U.S. President-elect Donald Trump will impose more tariffs on imports and hurt economic growth and metals consumption, especially in China.
China's stimulus measures released so far have also been less than expected and not directly targetted the sectors that consume metals.
"Trump's arrival, and thereby the dollar strength, and failure of Chinese stimulus to show colour on economic data were the key drivers for this month's fall in metal prices," said Sandeep Daga, director at Metal Intelligence Centre.
"In the last couple of weeks, traders were exiting the LME complex, ahead of a likely volatile next quarter."
However, LME copper prices were supported on solid Chinese demand around $9,000 a ton level, a key resistance level.
LME copper has dropped nearly 20% from a historic high level hit in May of $11,104.50.
LME aluminium CMAL3 rose 0.2% to $2,604.50 a ton, nickel CMNI3 edged up 0.1% at $16,075, zinc CMZN3 advanced 0.1% to $3,056, lead CMPB3 climbed 0.9% to $2,074.50 and tin CMSN3 jumped 1.5% to $28,605.
SHFE aluminium SAFcv1 edged up 0.1% at 20,375 yuan a ton, nickel SNIcv1 increased 0.8% to 127,300 yuan, lead SPBcv1 was up 0.3% at 17,420 yuan, tin SSNcv1 jumped 2.3% to 239,100 yuan while zinc SZNcv1 dropped 2.5% to 25,220 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich
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