METALS-Copper drops on global growth worries, firm dollar


By Eric Onstad

LONDON, June 8 (Reuters) - Copper prices drifted lower on Wednesday as worries about weaker global growth outweighed hopes for a demand recovery in top metals consumer China.

Three-month copper on the London Metal Exchange CMCU3 slipped 0.1% to $9,690 a tonne in official open-outcry trading after edging down 0.5% in the previous session.

"It's a tug-of-war between China and the rest of the world right now. There are concerns in the market that although China is opening up again, the global growth outlook looks challenged," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

LME copper has rebounded about 8% since touching a seven-month low on May 12.

"Last week's big jump was primarily driven by shorts finally surrendering, however, the turnaround to putting on long positions seems quite a bit more hesitant," Hansen added.

Beijing and commercial hub Shanghai have been returning to normal in recent days after two months of bitter isolation under a ruthless lockdown.

But the OECD slashed its growth forecasts and jacked up its inflation estimates on Wednesday, one day after the World Bank cut growth estimates.

The most-traded July copper contract in Shanghai SCFcv1 ended daytime trading up 0.1% at 72,790 yuan ($10,911.24) a tonne.

* Also weighing on metals markets was a firmer dollar =USD, making greenback-denominated metals more expensive for buyers using other currencies.

* South Korea's LG Energy Solution on Wednesday broke ground on nickel processing plants in Indonesia, part of the company's $9.8 billion investment in the country to produce electric vehicle batteries.

* LME tin CMSN3 climbed 1.5% to $36,600 a tonne after data showed Indonesia refined tin exports fell 42.8% in May from the previous month's volume.

* LME aluminium CMAL3 climbed 0.7% to $2,797 a tonne, zinc CMZN3 added 0.2% to $3,805, lead CMPB3 rose 0.4% to $2,233, but nickel CMNI3 lost 1.3% to $29,100.

($1 = 6.6717 yuan)

(Additional reporting by Brijesh Patel in Bengaluru; Editing by Aditya Soni and Louise Heavens)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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