METALS-London copper edges higher on China export boost, but firm dollar caps gains

Aug 27 (Reuters) - Three-month copper contract on the London Metal Exchange CMCU3 edged higher on Wednesday, supported by a pickup in Chinese export orders, although a slightly stronger dollar limited further upside.

The three-month contract on the LME CMCU3 edged up 0.04% to $9,840.5 per metric ton by 0234 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.15% to 79,340 yuan ($11,092.00) a ton.

Chinese fabricators have indicated a recent uptick in export orders. Export-driven demand was strong in the first half of the year, as manufacturers boosted output ahead of U.S. tariffs, but dried up as the levies came into effect. Any stabilisation in demand amid elevated trade tensions bodes well for the sector in the short term, said analysts from ANZ.

The USD struggled to gain ground, although the dollar index edged marginally higher to 98.27, after falling 0.24% in the previous session following U.S. President Donald Trump's move to fire Federal Reserve Governor Lisa Cook, which boosted expectations of U.S. interest rate cuts.

A stronger U.S. dollar makes greenback-priced metals more expensive for holders of other currencies, which can dampen demand and weigh on prices.

Elsewhere, Indonesian sovereign wealth fund Danantara plans to access $8.3 billion in investment funds in 2025 to develop a nickel processing hub in partnership with Chinese battery and mineral recycler GEM.

Indonesia is the world's largest nickel producer.

Among other London metals, aluminium CMAL3 edged 0.09% higher to $2,640.5 a ton, nickel CMNI3 gained 0.33% to $15,335, lead CMPB3 edged up 0.18% to $1,991.5, tin CMSN3 climbed 0.31% to $34,305, and zinc CMZN3 rose 0.02% to $2,814.

SHFE aluminium SAFcv1 increased 0.53% to 20,840 yuan, nickel SNIcv1 gained 1.58% to 122,250 yuan, tin SSNcv1 climbed 1.01% to 272,070 yuan, and zinc SZNcv1 rose 0.18% to 22,345 yuan, while lead SPBcv1 dipped 0.03% to 16,910 yuan.

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($1 = 7.1529 Chinese yuan)

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