METALS-Copper retreats from record highs as firmer dollar weighs

Oct 30 (Reuters) - Copper prices slipped on Thursday, pulling back from record highs hit in the previous session, as a stronger dollar weighed on the greenback-priced asset after the U.S. Federal Reserve cut its interest rates.

Three-month copper on the London Metal Exchange CMCU3 was down 0.96% at $11,076.5 per metric ton, as of 0241 GMT, after reaching a record high on Wednesday.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 edged 0.25% higher to 88,270 yuan ($12,392.25) a ton.

The dollar strengthened broadly after the U.S. central bank lowered rates by 25 basis points as expected, putting short-term pressure on copper prices.

A firmer dollar makes greenback-denominated assets less affordable to holders of other currencies. FRX/

Still, the outlook for copper is starting to look brighter with balances tightening for both 2025 and 2026 amid supply challenges and rising trade optimism, said analysts from ING.

Major miners including Glencore GLEN.L and Anglo American AAL.L reported lower copper output in the first nine months of the year, with a series of mine disruptions leading to analysts hiking their price forecasts for copper next year according to a Reuters poll.

Increased risk appetite on optimism over a potential U.S.-China trade deal has been the principal driver of the recent gains, aided by the prospect of easing monetary policy, which has tended to be a tailwind for the metals sector, said ANZ in a note.

Among other London metals, aluminium CMAL3 lost 0.57% to $2,870.5 a ton, nickel CMNI3 eased 0.27% to $15,325, lead CMPB3 edged down 0.07% to $2,025, tin CMSN3 fell 0.47% to $36,015, and zinc CMZN3 was down 0.49% at $3,067.5.

SHFE aluminium SAFcv1 edged up 0.05% to 21,265 yuan, nickel SNIcv1 firmed 0.1% to 121,140 yuan, and lead SPBcv1 gained 0.06% to 17,370 yuan, while tin SSNcv1 fell 0.69% to 284,270 yuan, and zinc SZNcv1 dipped 0.09% to 22,375 yuan.

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DATA/EVENTS (GMT)
0630 France GDP Preliminary QQ Q3

0855 Germany Unemployment Chg SA October

0855 Germany Unemployment Rate SA October

0900 Germany GDP Flash QQ SA, YY NSA Q3

1000 EU GDP Flash Prelim YY, QQ Q3

1000 EU Consumer Confid. Final October

1000 EU Unemployment Rate September

1300 Germany CPI Prelim YY October

1300 Germany HICP Prelim YY October

1315 EU ECB Refinancing Rate October

1315 EU ECB Deposit Rate October

($1 = 7.1230 Chinese yuan)

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