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Copper extends decline on more powerful dollar, China demand issues

Copper costs extended decreases on Thursday to strike twomonth lows, weighed down by a more powerful U.S. dollar and concerns about demand from top consumer China.

Three-month copper on the London Metal Exchange (LME). fell 0.5% to $9,004 per metric ton by 0150 GMT, striking. its lowest given that early September.

The most-traded December copper contract on the Shanghai. Futures Exchange (SHFE) decreased 1.5% to 73,600 yuan. ($ 10,169.96) a ton, its lowest considering that Sept. 12.

The U.S. dollar advanced to 1 year high, steered by Donald. Trump's triumph in last week's governmental election.

A stronger greenback makes dollar-priced metals more. costly for buyers holding other currencies.

We see copper costs trading lower to $8,500-$ 9,000 per lot. into year-end as most likely U.S. trade tariff walkings and. weaker-than-expected China stimulus information so far have actually weighed. on our conviction in a worldwide production recovery through. 2025, with investor placing length susceptible to an even more. loosen up, experts at Citi said in a note.

Trump has actually promised to adopt blanket 60% tariffs on U.S. imports. of Chinese products as part of a bundle of America First trade. measures.

Investors have also been disappointed by the scale of. China's recent stimulus measures to reboot its lacklustre. economy. China's residential or commercial property market is one of the biggest consumers. of base metals.

LME aluminium fell 0.3% to $2,523.5 a load, nickel. added 0.3% to $15,775, zinc decreased 0.8% to. $ 2,958, lead lost 0.2% to $2,004 and tin fell. 0.9% to $29,390.

SHFE aluminium dipped 0.6% to 20,690 yuan a heap,. nickel declined 1% to 124,940 yuan, lead. dropped 0.7% to 17,045 yuan, zinc edged up 0.5% at. 24,800 yuan, while tin fell 1.9% to 244,970 yuan.

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(source: Reuters)