Copper hits two-month low as strong dollar, weak China demand weigh
Adds milestone in headline and first paragraph; updates prices
NEW DELHI, Nov 13 (Reuters) -Copper prices touched a two-month low on Wednesday, tracking a stronger U.S. dollar and muted demand prospects in top metals consumer China.
Three-month copper on the London Metal Exchange (LME) CMCU3 was down 0.4% to $9,103 per metric ton by 0725 GMT. It had dipped to $9,097 per ton, its lowest level since Sept. 11 earlier in the session.
The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 fell 2.1% to 74,210 yuan ($10,272.28) a ton.
The U.S. dollar held below a 6-1/2-month peak against major peers and bitcoin edged further off record highs, as markets hit pause on so-called Trump trades ahead of key U.S. inflation data later in the day. USD/
A stronger dollar makes greenback-priced metals more costly for holders of foreign currencies.
"We believe that copper is at the lower end of its trading range and anticipate a potential moderate price recovery next week," Sucden Financial said in a note.
Investors have also been concerned about the impact of U.S. President-elect Donald Trump's policies on China.
"Uncertainty over what Donald Trump's return to the White House will mean for the global economy also weighed on sentiment," ANZ Research said in a note.
Adding to investor disappointment was the scale of China's recent stimulus measures to reboot its lacklustre economy.
Among other metals, LME aluminium CMAL3 fell 0.6% to $2,549 a ton, nickel CMNI3 rose 0.4% to $15,955, zinc CMZN3 edged lower 0.5% to $2,923, while lead CMPB3 firmed up 0.1% to $2,025 and tin CMSN3 fell 1.4% to $29,785.
SHFE aluminium SAFcv1 fell 1.7% to 20,765 yuan a ton, nickel SNIcv1 declined 1.3% to 125,870 yuan, lead SPBcv1 climbed 1.3% to 17,175 yuan, zinc SZNcv1 eased 1.3% at 24,585 yuan while tin SSNcv1 slumped 4.3% to 246,420 yuan.
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($1 = 7.2243 Chinese yuan)
Reporting by Neha Arora; Editing by Savio D'Souza and Rashmi Aich
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