Aug 19 (Reuters) - Copper prices rose on Wednesday, with the London contract hitting a more than two-year high, underpinned by falling output and a weaker U.S. dollar.
Three-month copper on the London Metal Exchange jumped as much as 1.8% to $6,686 a tonne, its highest since June 2018, while the most-traded September copper contract on the Shanghai Futures Exchange advanced 2.3% to 52,220 yuan ($7,544.61) a tonne.
China’s refined copper output in July fell 5.3% from the previous month to 814,000 tonnes, official data showed, as smelters carried out summer maintenance and coronavirus-related mining curbs tightened concentrate supply.
However, January-July output advanced 3.9% year-on-year to 5.63 million tonnes, the data showed.
Meanwhile, the U.S. dollar struggled to recoup heavy overnight losses on Wednesday after it slipped to a 27-month low in the previous session on uncertainties about an economic recovery and the U.S. fiscal stimulus package.
A weaker U.S. dollar makes greenback-priced LME metals cheaper for holders of other currencies.
* Rio Tinto cut its refined copper outlook for fiscal 2020 to 135,000-175,000 tonnes from a previous 165,000-205,000 tonne forecast.
* Global copper smelting activity tumbled to the lowest levels in over two years in July, data from satellite surveillance of copper plants showed.
* LME aluminium advanced 0.4% to $1,780 a tonne while ShFE aluminium climbed 1.1% to 14,580 yuan a tonne.
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* Asian shares climbed to a seven-month peak tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.
0600 UK CPI YY July
0900 EU HICP Final MM, YY July
1800 US Federal Open Market Committee will release
minutes from its July 28-29 policy meeting
$1 = 6.9215 yuan Reporting by Mai Nguyen; Editing by Aditya Soni
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