METALS-Copper edges higher on weak dollar, hopes for Chinese demand

By Eric Onstad

LONDON, Nov 11 (Reuters) - Copper prices crept higher on Tuesday after the dollar slid on weak jobs data, the U.S. moved closer to reopening government operations and top metals consumer China unveiled more measures to support growth.

Benchmark three-month copper CMCU3 on the London Metal Exchange rose 0.4% to $10,834.50 a metric ton by 1720 GMT.

LME copper has gained 23% this year, hitting a record peak of $11,200 on October 29.

The dollar index =USD weakened after a report showed that private employers cut jobs last month. A weaker dollar makes commodities priced in the U.S. currency cheaper for buyers using other currencies.

China's central bank said on Tuesday that it would maintain "appropriately loose" monetary policy conditions after Beijing's Monday announcement of new policy measures involving private capital investments in infrastructure projects.

"Chinese policymakers certainly have moved away from the stance a few years ago where they were quite restrictive on the economy and they've moved to a much more supportive state," said WisdomTree commodities strategist Nitesh Shah.

The most traded copper contract SCFcv1 on the Shanghai Futures Exchange closed with a 0.4% gain at 86,630 yuan ($12,162.01) a ton.

Industrial metals also felt the afterglow of a wider rally on financial markets on Monday over the expected end of the U.S. government shutdown after the Senate approved a compromise bill on Monday. MKTS/GLOB

Copper was also supported by news that state-owned Chilean miner Codelco, the world's largest producer of the metal used in power and construction, produced 7% less metal in September.

The metal hit its record peak last month largely owing to worries that mine disruptions would lead to shortages.

"I don't think the deficits are in the headlines as much as they were a few weeks ago, but the reality hasn't really changed," said WisdomTree's Shah.

"So I wouldn't be surprised if, with any news items on disruptions, we go back above $11,000 again."

Among other metals, LME aluminium CMAL3 rose 0.2% to $2,876 a ton, zinc CMZN3 shed 0.4% to $3,068.50, lead CMPB3 added 0.3% to $2,065, nickel CMNI3 was down 0.3% at $15,059 and tin CMSN3 climbed 1.8% to $36,685.

($1 = 7.1230 yuan)