METALS-London copper near three-week high on US-China de-escalation hopes

NEW DELHI, April 23 (Reuters) - Copper prices in London hit a near three-week high on Wednesday following U.S. President Donald Trump's comments about a trade deal with China, signalling a de-escalation in tensions but a stronger dollar limited sharper gains.

The benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was up 0.4% at $9,402 per metric ton, as of 0215 GMT. It briefly hit $9,481.5 per metric ton, the highest since April 3.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 1.2% to 77,860 yuan ($10,653.64) per metric ton.

Trump also told reporters he would be very nice in negotiations with Beijing and that tariffs on imports from the country would fall significantly following a deal, but not to zero.

"Comments from Trump suggesting a reduction in China tariffs leave room for de-escalation on the trade front," ING analysts said.

Aiding sentiment on Wednesday were comments from U.S. Treasury Secretary Scott Bessent that also suggested a possible de-escalation in U.S.-China trade tensions.

Meanwhile, the U.S. dollar jumped broadly against major currencies on Wednesday after Trump backed away from threats of firing Federal Reserve Chair Jerome Powell.USD/

A stronger dollar makes commodities priced in the U.S. currency costlier for buyers using other currencies.

"Ultimately, a sustained recovery in risk assets, as well as the U.S. dollar, relies, realistically, on deals being done between the U.S. and its major trading partners, especially China, and a major watering down of trade policies," said Kyle Rodda, senior financial market analyst at Capital.com.

Among other metals, LME aluminium CMAL3 added 1.05% to $2,405 a ton, lead CMPB3 rose 0.1% to $1,925.5, tin CMSN3 was up 0.4% at $31,260, zinc CMZN3 was up 1.4% to $2,632, and nickel CMNI3 firmed 0.02% at $15,685 a ton.

SHFE aluminium SAFcv1 firmed 0.4% to 19,825 yuan a ton, zinc SZNcv1 added 0.9% to 22,455 yuan, lead SPBcv1 eased 0.7% to 16,845 yuan, while nickel SNIcv1 was up 0.02% at 125,550 yuan, tin SSNcv1 fell 0.3% to 258,080 yuan.

($1 = 7.3083 yuan )

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