July 21 (Reuters) - London copper prices fell on Wednesday,
dented by a stronger dollar which rose on worries about climbing
COVID-19 cases worldwide.
Three-month copper on the London Metal Exchange fell
0.5% to $9,2792 a tonne by 0732 GMT. The most-traded August
copper contract on the Shanghai Futures Exchange
tracked overnight gains in London to close up 0.2% at 68,020
yuan ($10,504.86) a tonne.
The dollar stood on the verge of fresh peaks for this year,
as jitters about surging infections buttressed gains built on
higher interest rate expectations, with investors waiting on the
European Central Bank for their next cue.
A firm dollar makes metals priced in the U.S. currency more
expensive to holders of other currencies.
As copper prices fell because of dollar pressures,
downstream buying interest in China emerged, preventing a
steeper decline, said Huatai Futures in a note.
Yangshan copper premium <SMM-CUYP-CN> rose to $40 a tonne,
its highest since May 7, indicating strengthening demand for
imported metal into China.
* LME nickel dropped 1.6% to $18,385 a tonne,
aluminium shed 1.4% to $2,432 a tonne and tin
was down 0.3% to $33,410 a tonne.
* ShFE nickel declined 1.4% to 136,830 yuan a tonne
and zinc fell 1.4% to 22,170 yuan a tonne. Lead
jumped 1.3% to 15,815 yuan a tonne.
* The global zinc market was under-supplied by 17,900 tonnes
in May following a deficit of 13,800 tonnes in April, data from
the International Lead and Zinc Study Group showed.
* The premium of LME cash lead over the three-month contract
<CMPB0-3> hit a near three-week high of $13.25 a tonne,
indicating tightening nearby supply. LME inventories
<MPBSTX-TOTAL> fell to a one-year low of 66,975 tonnes.
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($1 = 6.4751 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Uttaresh.V and