METALS-London copper firms as dollar eases, weak China data caps gains

NEW DELHI, May 19 (Reuters) - Copper prices in London rose on Monday, tracking weakness in the U.S. dollar, although gains were capped due to concerns over demand outlook in top consumer China after data showed slowing industrial output growth.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 0.7% at $9,513 a metric ton as of 0714 GMT.

The dollar dipped to a one-week low versus the safe-haven yen as markets digested a surprise downgrade of the U.S. government's credit rating and as trade friction concerns weighed on sentiment. USD/

Meanwhile, official data showed China's industrial output and retail sales growth slowed in April, as a trade war threatened to dampen momentum in the world's second-largest economy.

The country's new home prices were unchanged for the second month in April, extending the no-growth trend to nearly two years despite policymakers' efforts to stabilise the sector.

Separately, U.S. Treasury Secretary Scott Bessent said in television interviews on Sunday that President Donald Trump will impose tariffs at the rate he threatened last month on trading partners that do not negotiate in "good faith" on deals.

"Trump's volatile policymaking presents a persistent downside risk to our metal price forecasts in the coming months," said BMI, a unit of Fitch Solutions.

Among other London metals, aluminium CMAL3 fell 0.3% to $2,473 a ton, zinc CMZN3 gained 0.07% to $2,693.5, lead CMPB3 gained 0.2% to $2,004 and nickel CMNI3 shed 0.1% to $15,630. Tin CMSN3 added 0.5% to $32,980.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) fell 0.6% to 77,820 yuan ($10,786.76) per ton.

SHFE aluminium SAFcv1 was down 0.2% to 20,110 yuan a ton, zinc SZNcv1 dropped 0.3% to 22,455 yuan, lead SPBcv1 dipped 0.4% to 16,860 yuan, nickel SNIcv1 fell 0.7% to 123,850 yuan, and tin SSNcv1 eased 0.2% to 264,860 yuan.

($1 = 7.2144 yuan)

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