METALS-Copper gains as weaker dollar lends support

By Brijesh Patel

Aug 4 (Reuters) - Copper prices rose on Monday, helped by a softer dollar after weaker-than-expected U.S. jobs data boosted bets for a Federal Reserve interest rate cut in September.

Three-month copper on the London Metal Exchange CMCU3 was up 0.5% at $9,673 per metric ton, as of 0712 GMT.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 0.1% to 78,330 yuan ($10,915.70) a ton.

The dollar index .DXY fell 0.4% against a basket of rival currencies after a dismal U.S. jobs report and firing of a top labour official by President Donald Trump stunned investors and led them to ramp up bets for imminent Fed rate cuts.

A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies. USD/

Meanwhile, Chilean miner Codelco has reduced copper extraction operations at its flagship El Teniente mine after a fatal accident but is still operating its concentrator and smelter, union leader Amador Pantoja told Reuters on Friday.

China's refined copper output is set to hit a record high in 2025, analysts say, as its giant smelting sector powers through a global shortage of copper ore that is forcing some overseas competitors out of business.

A surprise move by U.S. President Donald Trump to exclude refined metal from 50% import tariffs dragged U.S. copper prices down 23% on the COMEX HGc2 last week.

"There are now fears that the huge stockpile of copper that now sits in COMEX warehouses will be re-exported to international markets. That would put downward pressure on international benchmark copper prices," ANZ analysts said in a note.

Among other metals in London, aluminium CMAL3 was up 0.5% at $2,578 a ton, nickel CMNI3 gained 0.2% to $15,005, lead CMPB3 rose 0.1% to $1,973.50, tin CMSN3 gained 0.1% to $33,330, and zinc CMZN3 edged 0.3% higher to $2,735.50.

SHFE aluminium SAFcv1 was up 0.2% to 20,525 yuan, nickel SNIcv1 added 0.5% to 120,630 yuan, lead SPBcv1 rose 0.5% to 16,750 yuan, tin SSNcv1 gained 0.9% to 266,490 yuan, and zinc SZNcv1 slipped 0.4% to 22,255 yuan.

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