* China markets to reopen on Monday after week of holidays
* Indonesia reconsiders nickel ore export ban
* Dollar pares gains after September U.S. payrolls data
* Aluminium prices hit seven-week high
By Swetha Gopinath
LONDON, Oct 7 Copper rose on Friday after the
dollar pared gains on data showing U.S. employers took on fewer
workers than expected in September, indicating the Federal
Reserve could be more cautious about raising interest rates.
A weaker dollar boosts the buying power of those paying for
commodities with other currencies.
U.S. employment growth unexpectedly slowed for the third
straight month with a rise of 156,000, compared to a consensus
"The dollar edged lower after the payrolls and encouraged a
moderate rally in base metal prices," said Xiao Fu, head of
commodity markets strategy at Bank of China International.
Analysts said they were also closely watching the British
Sterling plunged 10 percent in a matter of minutes on Friday
in what traders said was a "flash crash" driven by
computer-initiated sell orders.
"Base metals are quite insulated from movements in the
pound, but we are closely watching it. If disorderly declines
are seen in the pound, it could affect market sentiment," Fu
Three-month copper on the London Metal Exchange
ended 0.4 percent higher at $4,775 a tonne. Aluminium
closed down 0.1 percent at $1,675. It hit $1,682.50 earlier in
the session, its highest since Aug. 19.
Copper prices could be pressured as Chinese financial
markets reopen on Monday after a week-long holiday, analysts
Traders are concerned a raft of new measures announced by
Beijing this week to dampen soaring house prices in second and
third tier cities will weigh on copper demand.
"Copper has been the underperformer (among base metals),
which may not change in 2017 as China's refined imports may
decline yet again on higher domestic refined production," metals
strategist Michael Widmer at Bank of America Merrill Lynch said
in a note.
Among other metals, LME nickel closed down 0.2
percent at $10,230 as traders shrugged off news that Indonesia
could export up to 15 million tonnes of nickel ore in 2017 if it
amends a ban on unprocessed ore exports introduced in 2014.
"There is an interesting dynamic between developments in
Indonesia and the Philippines," said Fu. "Increased supplies
from Indonesia could be offset by reduced output in the
The Philippines said last Friday it might not halt
operations at all 20 mines facing suspension for environmental
violations and will give them time to address problems, a
softening of the stance that has resulted in 10 mine closures.
Zinc rose 0.2 percent to $2,325, lead closed
up 1.1 percent at $2,076, while tin ended 0.5 percent
lower at $20,000 a tonne.
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
(Additional reporting by Melanie Burton in Melbourne; Editing
by William Hardy and Andrew Heavens)