METALS-LME copper hits near three-week high on dollar pullback, China stimulus hopes

March 6 (Reuters) - London copper touched a near three-week high on Thursday, spurred by a sharp pullback in the U.S. dollar and hopes for more stimulus from top consumer China.

Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.4% to $9,624 a metric ton, as of 0154 GMT, its highest level since February 14.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 added 1.7% at 78,430 yuan ($10,834.67) a ton, an over two-week peak.

The dollar index .DXY slipped 1.5% and hovered near a four-month low, making greenback-priced commodities cheaper for buyers holding other currencies. USD/

The Chinese National People's Congress (NPC) meeting entered second day, as investors awaited more stimulus headlines amid trade war concerns.

"Base metals rallied in Asian trade on the prospect of further China stimulus measures. Premier Li Qiang announced the economic growth goal for 2025 was 'about 5%'," said Daniel Hynes, a senior commodity strategist at ANZ Bank.

U.S. President Donald Trump will exempt automakers from his 25% tariffs on Canada and Mexico for a month as long as they comply with existing free trade rules, the White House said on Wednesday.

Trump's tariffs have strained relations with Canada, Mexico, and China. Trump imposed an extra 10% duty on Chinese goods, while Beijing responded with additional tariffs of its own.

Meanwhile, price premiums for aluminium on the physical market in the U.S. have surged to a record high due to the looming threat of tariffs on imports of the metal.

SHFE aluminium SAFcv1 rose 1.6% to 20,925 yuan a ton, zinc SZNcv1 gained 1.6% to 24,030 yuan, nickel SNIcv1 gained 0.4% to 128,680 yuan, lead SPBcv1 rose 0.4% to 17,390 yuan and tin SSNcv1 firmed 0.6% to 258,350 yuan.

LME aluminium CMAL3 gained 1.1% to $2,688.5 a ton, zinc CMZN3 added 0.8% to $2,900.5, lead CMPB3 was steady at $2,033.5, nickel CMNI3 soared 0.6% to $16,000 and tin CMSN3 advanced 0.9% to $31,975.

($1 = 7.2388 yuan)