October 18, 2018 / 2:32 AM / a month ago

METALS-Copper falls on stronger dollar, China economic pressure

(Updates prices, adds Indonesia halting tin trading)

By Manolo Serapio Jr

MANILA, Oct 18 (Reuters) - London copper fell nearly 1 percent on Thursday as the U.S. dollar strengthened after minutes from the Federal Reserve’s meeting last month showed more interest rate increases are likely for the rest of the year.

Comments from Chinese Premier Li Keqiang that China’s economy faces increasing downward pressure amid an ongoing trade war with the United States also weighed on sentiment.

Three-month copper on the London Metal Exchange was down 0.8 percent at $6,169 a tonne by 0719 GMT, after earlier hitting a one-week low of $6,155.50.

The most-traded December copper contract on the Shanghai Futures Exchange ended 0.2 percent lower at 49,980 yuan ($7,206) a tonne.

Other LME metals were also weaker including aluminium, zinc, lead and nickel.

While metals demand remains healthy “concerns about the economic outlook have intensified in recent months,” Goldman Sachs analysts said in a report this week.

“A stronger dollar, tighter financial conditions and the festering trade dispute between China and the United States are downside risks to demand, particularly in emerging markets.”

* CHINA ECONOMY: Li, while on a trip to Europe, said Beijing is determined to cope with risks and challenges for the economy which he expects to grow within a reasonable range in the third quarter.

* U.S. RATE HIKES: Federal Reserve policymakers are largely united on the need to raise borrowing costs further, minutes from their September policy meeting show, despite U.S. President Donald Trump’s view that interest rate hikes have already gone too far.

* DOLLAR: Amid expectations for further U.S. rate hikes, the dollar traded stronger versus its major peers, making dollar-priced assets costlier for holders of other currencies.

* INDONESIA TIN: Indonesia Commodity & Derivatives Exchange has suspended trading of tin ingots and tin ore with origin verified by PT. Surveyor Indonesia.

* PRICES: LME aluminium eased 0.1 percent to $2,020 a tonne, zinc declined 0.7 percent to $2,647 and lead lost 0.6 percent to $2,034. In Shanghai, aluminium shed 1.1 percent to 14,140 yuan, zinc climbed 0.8 percent to 22,460 yuan and nickel fell 1.6 percent to 101,140 yuan.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.9362 Chinese yuan)

Reporting by Manolo Serapio Jr.; editing by Richard Pullin and Vyas Mohan

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