METALS-London metals edge lower on weak China demand; soft dollar caps slide

By Michele Pek

SINGAPORE, May 27 (Reuters) - London metals edged lower on Tuesday amid weaker copper demand in top consumer China, although a softer dollar cushioned the fall.

Three-month copper on the London Metal Exchange CMCU3 nudged 0.31% lower to $9,580.5 per metric ton by 0402 GMT.

Downstream purchases are relatively cautious, end-user demand is gradually slowing, and fundamentals may weaken as copper demand approaches its offseason, said Chinese consultancy Everbright Futures.

Photovoltaic cells, wires, and cable orders have weakened, and the overall copper consumption growth rate has declined, but demand may remain resilient given the 90-day tariff suspension, said broker Galaxy Futures.

The U.S. and China agreed to reduce tit-for-tat tariffs and implement a 90-day pause on actions earlier in the month, but there is still uncertainty on what will follow after the temporary truce.

Meanwhile, the dollar index =USD slid 0.1%, down for a third-straight session, making dollar-denominated assets more affordable to holders of other currencies. FRX/

Broadly, China's industrial profits picked up pace in April, official data showed on Tuesday.

On the supply side, Ivanhoe Mines IVN.TO said on Monday it had suspended its output forecast for this year after seismic activities at its giant copper mine in the Democratic Republic of Congo halted underground mining operations.

The Democratic Republic of Congo is the biggest copper producer in Africa.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 traded 0.04% lower to 78,240 yuan ($10,881.33) a ton.

SHFE aluminium SAFcv1 eased 0.6% to 20,035 yuan a ton, lead SPBcv1 was down 0.09% at 16,825 yuan, nickel SNIcv1 edged 0.37% lower to 122,390 yuan, while zinc SZNcv1 gained 0.47% to 22,300 yuan and tin SSNcv1 was up 0.06% to 264,600 yuan.

Among other London metals, aluminium CMAL3 lost 0.63% to $2,448 a ton, zinc CMZN3 eased 0.41% to $2,690.5, lead CMPB3 shed 0.4% to $1,983 and nickel CMNI3 weakened 0.57% to $15,505. Tin CMSN3 was down 0.26% to $32,735.

($1 = 7.1903 Chinese yuan)

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