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METALS-Copper eases on weak China demand, stronger dollar

HANOI, June 2 (Reuters) - Copper fell on Wednesday on signs of weakening demand in top consumer China and as a firmer dollar made greenback-priced metals more expensive to holders of other currencies.

The most-traded July copper contract on the Shanghai Futures Exchange slipped 0.3% to 73,800 yuan ($11,568.12) a tonne by 0143 GMT, while the three-month copper on the London Metal Exchange was almost unchanged at $10,246 a tonne.

Yangshan copper premium SMM-CUYP-CN fell to $30.50 a tonne, its lowest since February 2016, indicating weakening demand for imported metal into China as high copper prices hurt profit of some downstream users.

The dollar clung to small gains from overnight as a pick up in U.S. manufacturing kept bets alive for a quicker normalisation of Federal Reserve policy.

Meanwhile, the threat of supply disruption from Chile eased as BHP said operations at the world’s largest copper mine Escondida and at the smaller Spence mine in the country were normal on Tuesday despite a labour strike.

FUNDAMENTALS

* Brazilian miner Vale said it will suspend operations at its Sudbury, Canada nickel mine, after its proposal for a five-year contract was rejected by the United Steelworkers union.

* COLUMN-Funds cut copper exposure as Chinese impetus fades: Andy Home.

* Russia’s industry ministry has held preliminary discussions with metals producers about buying their products for the state stockpile, the ministry said on Tuesday.

* Some Japanese aluminium buyers have agreed to pay a global producer a premium of $185 per tonne over the benchmark price for July-September shipments, up 24-25% from the current quarter, sources said.

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

DATA/EVENTS (GMT)

0130 Australia Real GDP QQ, YY SA Q1

1200 Brazil Industrial Output MM, YY April

1800 US Federal Reserve issues the Beige Book of

economic condition

$1 = 6.3796 yuan Reporting by Mai Nguyen; Editing by Sriraj Kalluvila

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