Copper up, but set for 6th weekly drop on demand worries
Recasts, updates prices
BEIJING, May 26 (Reuters) -Copper prices rallied on Friday on improved sentiment over progress in U.S. debt talks, while still heading for a sixth straight weeklyloss with lingering macroeconomic concerns darkening themetals demand outlook against rising supplies.
Three-month copper on the London Metal Exchange CMCU3 was up 1.4% at $8,073 a tonne, as of 0735 GMT, but down 2.2%so far for theweek.
The most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 ended day-time trade 2.2% higher at 64,630 yuan ($9,350.27) a tonne.
Friday's gains came after progress was made in the U.S. ceiling negotiations, noted analysts at Dongwu Futures.
Copper inventories in warehouses monitored by SHFE also fell 15.9% this week to 102,511 tonnes on Friday, more than halving a late-February peak, bolstering the change in sentiment. CU-STX-SGH
U.S. President Joe Biden and top congressional Republican Kevin McCarthy appeared to be closing in on a deal that would raise the government's $31.4 trillion debt ceiling for two years while capping spending on most items.
Previous jittersover the debt negotiation and signs of a global economic slowdown sent copper prices below $8,000 a tonne earlier this week for the first time since November.
Expectations that U.S. interest rates could remain higher for longer than initially expected also supported the dollar.
The greenback stood near a two-month high against its major peers on Friday and was headed for a third weekly gain, making it less attractive for non-dollar holders to buy the dollar-priced commodities.
Market fundamentals also deteriorated by the rising production at copper mines and persistently tepid demand, according to analysts at Antaike.
Participants in China expect to see arrivals of copper shipped from Democratic Republic of Congo in June, after China's CMOC reached an agreement with the local government and resumed exports from a mine in the African country.
LME aluminium CMAL3 climbed 0.9% to$2,251.50 a tonne, tin CMSN3 gained 0.3%to $24,680, lead CMPB3 nudged 0.5%to $2,084, nickel CMNI3 rose 0.9%to $21,425, and zincCMZN3 was up 1.6%to $2,308.
SHFE aluminium SAFcv1 jumped 3.4%to 18,185 yuan a tonne, lead SPBcv1 ticked 0.2%up at 15,265 yuan, nickel SNIcv1 was up 1.3%at 168,110yuan, tin SSNcv1 rose 2.2%to 201,240yuan, and zinc SZNcv1 added 0.7%at 19,285 yuan.
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Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Shailesh Kuber
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