London copper rises on weaker dollar, but US-China trade conflict caps gains

By Hongmei Li

SINGAPORE, June 2 (Reuters) - Copper prices in London climbed on Monday, supported by a weaker dollar, although renewed U.S.-China trade tensions raised supply chain concerns and limited further upside in metal prices.

Benchmark three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.7% at $9,572 per metric ton, as of 0706 GMT.

China's commodity markets were closed on Monday for the Dragon Boat holiday.

The dollar edged lower, paring gains seen last week, as markets assessed the potential growth and inflation risks from U.S. President Donald Trump's latest tariff policy.

Trade tensions intensified after Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25%, ratcheting up pressure on global steel producers.

China's manufacturing activity contracted in May for a second month, an official survey showed on Saturday, fuelling expectations for more stimulus to support the economy amid a protracted trade war with the United States.

The official purchasing managers' index improved slightly to 49.5 in May from 49.0 in April but stayed below the 50-mark separating growth from contraction, in line with a median forecast of 49.5 in a Reuters poll.

LME aluminium CMAL3 dipped 0.4% to $2,434.5 a ton, lead CMPB3 added 0.6% to $1,970.5, zinc CMZN3 gained 1% to 2,646.5, tin CMSN3 edged 0.1% higher to $30,450 and nickel CMNI3 was up 1.2% at $15,420.

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