METALS-London copper dips on firmer dollar, but set for monthly gains

Oct 31 (Reuters) - London copper slipped on Friday as the U.S. dollar firmed, although the metal remained on track for monthly gains amid persistent supply concerns.

Three-month copper on the London Metal Exchange CMCU3 declined 0.52% to $10,860 per metric ton by 0714 GMT. It has risen 5.81% so far this month, heading for a third straight monthly gain.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 dipped 1.67% to 87,010 yuan ($12,215.36) a ton. However, it logged a third straight monthly gain, rising 4.79%.

The dollar index =USD was last up 0.38%, having reached its highest since August 1 earlier in the session. A firmer dollar makes greenback-denominated assets less affordable to holders of other currencies. FRX/

Copper supply concerns have risen recently, with many top miners reporting lower output for the first nine months of the year.

Analysts from investment bank Citi remain bullish on copper, expecting higher prices in 2026 due to stronger cyclical demand expectations and mine supply constraints.

U.S. President Donald Trump said on Thursday he had agreed with President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on illicit fentanyl trade, resuming U.S. soybean purchases and keeping rare earths exports flowing.

While the deal should stabilise U.S.-China relations, recent mine supply disruptions continue to weigh on China's smelting industry, with processing fees dipping into negative territory as smelters fight for a share of a decreasing supply flow, said analysts from ANZ.

Among other London metals, aluminium CMAL3 lost 0.35% to $2,853.5 a ton, nickel CMNI3 edged down 0.26% to $15,190, lead CMPB3 eased 0.25% to $2,017, and zinc CMZN3 decreased 0.38% to $3,026, while tin CMSN3 climbed 0.3% to $35,900.

SHFE aluminium SAFcv1 rose 0.16% to 21,300 yuan and lead SPBcv1 strengthened 0.17% to 17,390 yuan, while nickel SNIcv1 dipped 0.54% to 120,590 yuan, tin SSNcv1 eased 0.27% to 283,910 yuan, and zinc SZNcv1 decreased 0.29% to 22,355 yuan.

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