METALS-London copper approaches 2-month high, set for 3rd straight weekly gain

By Mai Nguyen

HANOI, April 23 (Reuters) - London copper prices hit their highest level in nearly two months on Friday, on track for a third straight week of gains, as a weaker dollar boosted the appeal of metals priced in the U.S. currency for holders of other currencies.

Three-month copper on the London Metal Exchange CMCU3 rose as much as 1.1% to $9,500 a tonne, its highest since Feb. 25. The contract was up 0.9% at $9,488.50 a tonne by 0702 GMT, rising 3% on a weekly basis.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 closed up 0.4% at 69,440 yuan ($10,692.95) a tonne, up for the fourth straight week.

The dollar hovered around a seven-week low as traders contemplate the next moves by major central banks ahead of a U.S. Federal Reserve meeting next week.

Appetite for copper was also supported after the United States and other countries lifted their targets for slashing greenhouse gas emissions, as the metal is expected to benefit from green investments into electric vehicles and renewable energy.

"Although copper will likely hit its all-time high level ... in the near term, we maintain our cautious view over the rest of the year," Fitch Solutions analysts said in a note.

"We believe a more nuanced fundamental picture will emerge later in 2021, with Chinese demand likely to taper off and supply to pick up. In fact, signs of price weakness are emerging with a fast unwinding of long positions."

Yangshan copper premium SMM-CUYP-CN was last at $48 a tonne, hovering near its Nov. 18 low, indicating weakening demand for imported metal in top consumer China.

FUNDAMENTALS

* LME aluminium CMAL3 rose 0.7% to $2,380 a tonne and lead CMPB3 dropped 0.8% to $2,032.50 a tonne, while ShFE aluminium SAFcv1 increased 1% to 18,355 yuan a tonne and ShFE nickel SNIcv1 was down 0.2% at 120,240 yuan a tonne.

($1 = 6.4940 yuan)

(Reporting by Mai Nguyen; Editing by Shounak Dasgupta, Subhranshu Sahu and Susan Fenton)

((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

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