(Adds Shanghai closing prices, updates London prices) BEIJING, Jan 25 (Reuters) - London copper edged higher on Friday as support from a weaker dollar saw the metal claw back the previous session's losses, although uncertainty over the progress in U.S.-China trade talks capped the upside. Copper remained on course to shed 1.6 percent this week on fears China's slowing economy will hurt demand. That would mark its steepest weekly drop since the week ended Dec. 21. On the supply side, Freeport McMoRan Inc, the world's second-largest copper miner, forecast on Thursday a drop in 2019 production. An Indonesian official said earlier this month that Freeport's Grasberg mine would produce around 1.2 million tonnes of copper concentrate this year, compared to 2.1 million tonnes in 2018, as operations move from open pit to underground mining. Grasberg's output is expected to double between 2019 and 2021, Freeport CEO Richard Adkerson said. "As long as global GDP growth exceeds 1 percent this year and 2 percent (per year) on average thereafter, the market should go into a meaningful deficit with rising prices," Jefferies analyst Christopher LaFemina wrote in a note. FUNDAMENTALS * LME COPPER: Three-month copper on the London Metal Exchange was up 0.5 percent at $5,951 a tonne as of 0749 GMT, with traders also pointing to short-covering ahead of the Lunar New Year holidays in China next month. The most-traded March copper contract on the Shanghai Futures Exchange ended flat at 47,380 yuan ($7,006.60) a tonne. * TRADE: The United States and China are a long way from resolving trade issues but there is a fair chance the two countries will get to a trade deal, Commerce Secretary Wilbur Ross said on Thursday. * SCRAP: China's imports of scrap copper from the United States rose in December from the previous month, customs data showed, snapping six straight months of declines. * ANGLO: Anglo American said its copper output had reached a five-year high and its overall output for the last quarter of 2018 had risen 7 percent following operational changes that boosted efficiency. * NICKEL: The metal used to make stainless steel closed up 1 percent in Shanghai and added 0.3 percent in London , where other metals were also marginally higher. * For the top stories in metals and other news, click or MARKETS NEWS * Asian stocks rallied to a seven-week high, buoyed by gains in U.S. technology firms as pockets of strength in corporate earnings eased some of the anxiety over a slowing global economy. PRICES BASE METALS PRICES 0755 GMT Three month LME copper 5952 Most active ShFE copper 47350 Three month LME aluminium 1891.5 Most active ShFE aluminium 13520 Three month LME zinc 2642 Most active ShFE zinc 21525 Three month LME lead 2074 Most active ShFE lead 17655 Three month LME nickel 11810 Most active ShFE nickel 94850 Three month LME tin 20935 Most active ShFE tin 148950 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 651.06 LME/SHFE ALUMINIUM LMESHFALc3 -1302.95 LME/SHFE ZINC LMESHFZNc3 220.28 LME/SHFE LEAD LMESHFPBc3 734.5 LME/SHFE NICKEL LMESHFNIc3 1816.81 ($1 = 6.7622 Chinese yuan) (Reporting by Tom Daly; Editing by Joseph Radford and Subhranshu Sahu)
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