METALS-Copper strengthens with weaker dollar, easing trade tensions

By Polina Devitt

LONDON, Nov 7 (Reuters) - Copper prices rose on Friday, supported by a weaker dollar and signs of easing trade tensions between Washington and Beijing and ignoring, for now, lower copper imports by top metals consumer China.

Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.1% at $10,689 a metric ton by 1714 GMT, facing resistance from the 21-day moving average at $10,774.

The metal used in power and construction has lost 5% since worries about tighter global supply pushed it to a record high of $11,200 on October 29.

"Copper demand is still growing, but not as strongly as one would expect as of last month," said Dan Smith, managing director of Commodity Market Analytics.

"The global macro story is reasonably good, with solid PMIs, but China's story has got a bit weaker in October with weak PMI readings and lower copper imports."

China's copper imports dropped 9.7% month-on-month in October, official data showed, as consumers shied away from restocking because of high prices.

The country's overall trade data showed that exports fell unexpectedly after months of front-loading U.S. orders to beat President Donald Trump's tariffs. Imports expanded at their slowest in five months.

On the supply front, Freeport-McMoRan said in an SEC filing that Freeport Indonesia restarted operations at two mines at its Grasberg copper complex.

Smith said LME copper and aluminium look "a bit wobbly in the short term", with potentially bearish signals in algorithmic computer models that place buy and sell orders largely on fund momentum signals.

LME aluminium CMAL3 rose 0.1% to $2,847 a ton, zinc CMZN3 gained 0.5% to $3,061.50, lead CMPB3 added 0.8% to $2,046.50, tin CMSN3 was up 0.1% at $35,850 and nickel CMNI3 firmed by 0.2% to $15,065.