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METALS-Copper eases on stronger dollar, recovering Peru production

Sept 2 (Reuters) - London copper slipped on Wednesday from a 26-month high hit in the previous session, as the dollar strengthened and output recovered in the world’s second-largest producer of Peru.

Three-month copper on the London Metal Exchange fell 0.5% to $6,656 a tonne by 0202 GMT, after rising to its highest since June 2018 in the previous session.

The most-traded October copper contract on the Shanghai Futures Exchange fell 1.4% to 51,740 yuan ($7,571.52) a tonne.

The dollar bounced off two-year lows as U.S. data pointed to a firm manufacturing activity, making greenback-traded metals more expensive to buyers using other currencies.

A Peruvian government officer said copper mining in the country had almost completely recovered from the impacts of the coronavirus pandemic. Production, which plunged 20.4% in the first half of 2020, fell only 2.2% year-on-year in July.

FUNDAMENTALS

* Trading firm Traxys has won a tender to sell cobalt metal for Wheaton Precious Metals, two sources familiar with the matter said, in a deal that propels it into the big league to rival the likes of Glencore in the valuable commodity.

* LME aluminium fell 0.4% to $1,810 a tonne and zinc declined 0.7% to $2,535 a tonne, while ShFE aluminium decreased 1.2% to 14,400 yuan a tonne.

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

MARKETS NEWS

* Asian shares were set gain, encouraged by buoyant U.S. moves that followed stronger-than-expected manufacturing indicators while the dollar emerged from its recent lows against the euro.

DATA/EVENTS (GMT)

0600 UK Nationwide House Price MM, YY Aug

1400 US Factory Orders MM July

1800 US Federal Reserve issues the Beige Book of

economic condition ($1 = 6.8335 yuan) (Reporting by Mai Nguyen; Editing by Subhranshu Sahu)

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