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London copper drifts up as China hopes offset firmer dollar



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Oct 22 (Reuters) -London copper prices ticked higher on Tuesday, as hopes about further 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 0.3% to $9,588 per metric ton by 0214 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 0.7% to 76,890 yuan ($10,795.06) a ton.

The U.S. dollar clung to two-and-half month highs, 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.

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, particularly in light of ongoing weaknesses in the property sector, could potentially increase demand for physical metals.

The copper inventory in SHFE warehouses CU-STX-SGH rose last week to 168,425 tons, its highest level since Sept. 13. Meanwhile, China's refined copper output in September remained at 1.14 million tons, up 0.4% from a year earlier.

The global refined copper market showed a 54,000 metric tons surplus in August, compared with a 73,000 metric tons surplus in July, the International Copper Study Group (ICSG) said.

LME aluminium CMAl3 steadied at $2,596.5 a ton, nickel CMNI3 decreased 0.8% to $16,560, zinc CMZN3 climbed 0.1% to $3,078.5, lead CMPB3 was 0.2% higher at $2,061, and tin CMSN3 was down 0.4% at $30,900.

SHFE aluminium SAFcv1 declined 0.2% to 20,750 yuan a ton, nickel SNIcv1 fell 1.9% to 126,530 yuan, zinc SZNcv1 dipped 1.6% to 24,870 yuan, lead SPBcv1 advanced 0.2% to 16,775 yuan while tin SSNcv1 fell 1.1% to 252,960 yuan.


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($1 = 7.1227 Chinese yuan renminbi)



Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich

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