METALS-Copper edges higher on weaker dollar, lower stocks

By Polina Devitt

LONDON, Sept 8 (Reuters) - Copper prices inched up on Monday, supported by a weaker dollar, outflows from warehouses registered with the London Metal Exchange, and hopes of stronger import demand in China this month.

Benchmark copper CMCU3 on the LME rose 0.4% to $9,935 a metric ton by 1600 GMT. The contract touched a five-month high of $10,038 last week amid mounting expectations of a U.S. interest rate cut later this month.

Import appetite in top consumer China also underpinned the market, with the Yangshan copper premium SMM-CUYP-CN up 1.8% at $58 a ton, its three-month high.

The yuan hit a one-week high against the U.S. currency, making dollar-priced metals more attractive for Chinese buyers.

Chinese imports of unwrought copper in August fell from July to 425,000 tons but rose from a year ago, while imports of copper concentrates climbed to 2.76 million tons, a four-month high.

"Lower treatment charges failed to curtail China's appetite for copper concentrate," analysts at ANZ said in a note.

"Favourable import parity and prospects of weaker domestic production should keep refined copper imports strong in September."

China's overall export growth slowed to a six-month low in August, while imports grew 1.3%, following 4.1% growth a month earlier.

LME-registered copper stocks MCUSTX-TOTAL stood at 155,825 tons, with outflows of 2,125 tons across several locations and fresh cancellations of 8,500 tons in South Korea, LME daily data showed. 0#MCUSTX-LOC

LME aluminium CMAL3 gained 0.8% to $2,620.50 a ton as on-warrant aluminium inventories MALSTX-TOTAL in LME storage fell to 442,425 tons, the lowest since late July, after 32,000 tons of fresh cancellations in Malaysia. 0#MALSTX-LOC

LME zinc CMZN3 gained 0.5% to $2,875, lead CMPB3 climbed 0.3% to $1,991.50, tin CMSN3 added 0.2% to $34,250 and nickel CMNI3 was steady at $15,230.

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