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London copper gains as China hopes offset firmer dollar



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Adds comments and updates prices

Oct 22 (Reuters) -London copper prices rose onTuesday, as expectations offurther stimulus measures and demand recovery in top consumer China countered pressure from a firmer U.S. dollar.

Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.7% to $9,628 per metric ton by 0512 GMT after hitting a one-week high in the previous session.

The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 fell 0.4% to 77,080 yuan ($10,821.59) a ton.

The U.S. dollar clung to two-and-half-month high, making greenback-priced metals less appealing for holders of other currencies. USD/

China lowered benchmark lending rates at the monthly fixing on Monday, after reductions to other policy rates last month as part of a package of stimulus measures aimed at revitalizing the economy.

Recent data from China indicates a slowdown in economic growth, underscoring the necessity for additional stimulus measures.

Copper remains a strategic material of which China has scarce domestic reserves, so their import levels are likely to remain elevated and relatively inelastic to prices, said Daniel Hynes, senior commodity strategist at ANZ.

Base metals are extensively used in sectors such as construction and electronics, with China as the leading consumer. Any measures to boost the country's economic growth could potentially increase demand for physical metals.

Further details surrounding China policy easing at the upcoming National People's Congress (NPC) meeting are likely to be supportive for base metals into year-end and early 2025, analysts at Citi said in a note.

Meanwhile, China's refined copper output in September remained at 1.14 million tons, up 0.4% from a year earlier.

LME aluminium CMAl3 rose 0.5% at $2,607.5 a ton, nickel CMNI3 decreased 0.8% to $16,570, zinc CMZN3 climbed 0.6% to $3,092.5, lead CMPB3 was 0.6% higher at $2,069.5, and tin CMSN3 was up 0.1% at $31,050.

SHFE aluminium SAFcv1 added 0.1% to 20,820 yuan a ton, nickel SNIcv1 fell 1.7% to 126,790 yuan, zinc SZNcv1 dipped 1.1% to 25,000 yuan, lead SPBcv1 advanced 0.2% to 16,785 yuan while tin SSNcv1 fell 1.1% to 253,170 yuan.


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($1 = 7.1228 Chinese yuan renminbi)



Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich and Eileen Soreng

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