Copper Slips From Decade High On Stronger Dollar Lower Premium

By Mai Nguyen

HANOI, April 28 (Reuters) - Copper futures fell on Wednesday on a stronger dollar and tranh đồng phong cảnh đồng quê signs of weaker demand in top consumer China at a time when prices were edging close to a record high in London.

Three-month copper on the London Metal Exchange fell 0.6% to $9,793 a tonne by 0724 GMT, retreating from a decade high of $9,965 a tonne hit on Tuesday. The contract's record high level is at $10,190 a tonne.

The most-traded June copper contract on the Shanghai Futures Exchange closed 0.9% lower at 71,340 yuan ($10,998.57) a tonne.

Yangshan copper premium <SMM-CUYP-CN> fell to $45.50 a tonne, it lowest since April 2017, indicating subdued demand for tranh đồng phong cảnh đồng quê imported metal into China.

A rebounding U.S.

dollar also made greenback-priced metals more expensive and less appealing to holders of other currencies.

"I don't see strong demand. The U.S. dollar will be stronger again and Indian COVID-19 (situation) seems to be deteriorating which will have negative impact on global trade and global recovery," said a China-based copper producer, referring to a record surge in cases in the world's second biggest population.

Meanwhile in top copper producer Chile, threats of strike were reverted after the country allowed another drawdown in pension, pleasing workers.

FUNDAMENTALS

* LME aluminium fell 0.1% to $2,394 a tonne and zinc declined 0.7% to $2,906 a tonne.

ShFE aluminium was down 0.2% to 18,480 yuan a tonne while ShFE nickel jumped 1.9% to 127,330 yuan a tonne.

* China's Lygend Mining said on Tuesday it had started trial production at its high-pressure acid leach nickel and cobalt project in Indonesia.

* Ample copper supplies next year and in 2023 will keep the market balanced, but miners need to start investing in new capacity now to meet a pick up in demand growth as economies switch to renewable energy.

($1 = 6.4863 yuan) (Reporting by Mai Nguyen; Editing by Rashmi Aich)