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METALS-Copper dips as dollar firms ahead of U.S. election

(Updates prices)

Nov 2 (Reuters) - Copper futures fell on Monday, despite better-than-expected manufacturing data from top consumer China, as a firmer dollar ahead of the U.S. presidential election made greenback-priced metals more expensive to holders of other currencies.

Three-month copper on the London Metal Exchange dipped 0.1% to $6,714.50 a tonne by 0712 GMT.

The most-traded December copper contract on the Shanghai Futures Exchange closed down 0.2% at 51,070 yuan ($7,631.04) a tonne, having touched 50,720 yuan a tonne earlier in the session - its lowest since Sept. 30.

“Copper is capped between positive Chinese manufacturing data and a firm U.S. dollar ahead of the U.S. election,” said commodities broker Anna Stablum of Marex Spectron.

“A Biden win might be more positive to base metals’ demand in the longer term, but I think the dollar reaction will outweigh all else,” she added, referring to Democratic U.S. presidential nominee Joe Biden.

China’s manufacturing activity fastened at the quickest pace in nearly a decade in October, but a steady U.S. dollar made metals more expensive.

New rounds of coronavirus-driven lockdowns globally also threatened the global economic recovery and demand for metals.

FUNDAMENTALS

* ShFE aluminium hit its highest since January 2018 at 14,850 yuan a tonne, while LME aluminium dipped 0.3% to $1,843 a tonne.

* One party is holding 40-50% of LME aluminium inventories and short-term futures, while the discount of LME cash over the three-month contract tightened to $1.50 a tonne, its smallest since December 2019, indicating less nearby supplies. <0#LME-WHT> CMAL0-3

* “It is hard to get hold of aluminum units as most free floating ingots are sucked into financing deals. The attractiveness of these deals are easing as the curve is tightening but we need to see tighter spreads for a longer period to see a change in demand from players involved in the financing game,” Marex’s Stablum added.

* The suspension of operations at Chile’s Candelaria copper mine continued on Friday with no signs of a resolution in a contractual dispute between the company and two workers’ unions.

* For the top stories in metals and other news, click or

$1 = 6.6924 yuan Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips

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