METALS-Shanghai copper hits over one-week high on softer dollar, China demand hopes

BEIJING, Aug 11 (Reuters) - Shanghai copper futures climbed on Monday to hit their highest in more than a week, aided by a softer dollar and China demand hopes, even though supply concerns eased after Codelco got nod to restart operations at the El Teniente mine in Chile.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.69% to 78,960 yuan ($10,993.39) a metric ton by 0235 GMT.

The contract hit the highest since July 30 at 79,100 yuan a ton earlier in the session.

A softer dollar =USD amid growing expectations for a U.S. interest rate cut in September supported prices of copper, which is used in power and construction.

A weaker dollar makes commodities priced in the greenback less expensive for buyers using other currencies.

Also, underpinning copper prices were expectations of growing demand from top consumer China in the peak demand season in September.

However, gains were curbed by easing supply concerns as miner Codelco received authorisation from Chile's labor inspector office to begin resuming certain operations at its flagship El Teniente copper mine.

Operations at the mine were suspended for more than a week following a deadly collapse that killed six workers.

Weaker-than-expected China factory-gate data also capped the gains in copper prices.

China's producer prices fell more than expected in July, underscoring the impact of sluggish domestic demand and persistent trade uncertainty on consumer and business sentiment.

SHFE zinc SZNcv1 rose 0.42%, lead SPBcv1 advanced 0.45%, nickel SNIcv1 ticked 0.14% higher, while tin SSNcv1 and aluminium SAFcv1 were little changed.

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($1 = 7.1825 Chinese yuan)