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METALS-LME copper lingers around $7,000 as Biden's win weakens dollar

(Updates prices)

Nov 9 (Reuters) - Copper prices advanced on Monday, with the London contract hovering around the key level of $7,000 a tonne, as Democrat Joe Biden’s victory in the U.S. presidential election dented the U.S. dollar.

The three-month copper contract on the London Metal Exchange rose 0.3% to $6,966 a tonne by 0701 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange closed up 0.7% to 51,840 yuan ($7,881.29) a tonne.

The dollar hit a 10-week low as investors heralded President-elect Biden’s win by buying trade-exposed currencies on expectations that a calmer White House could boost world commerce and that monetary policy will remain easy.

A cheaper dollar made greenback-priced metals more attractive to holders of other currencies.

“It’s risk-on sentiment because of the certainty of the results of the U.S. presidential election. (London copper) will break $7,000 and head to around $7,150 and fall back here again around $7,000,” said a Singapore-based metal trader.

Also supporting sentiment was data showing China’s exports grew at the fastest pace in 19 months in October, while imports also rose, as the world’s top copper consumer continued to recover from its coronavirus-driven slump early this year.

FUNDAMENTALS

* LME nickel jumped 2.8% to $15,790 a tonne, aluminum rose 0.5% to $1,911.50 a tonne, while ShFE zinc advanced 2.8% to 20,465 yuan a tonne and ShFE lead increased 1.4% to 14,545 yuan a tonne.

* China’s copper imports rose 43% year-on-year in October, official data showed on Saturday, and set a new annual peak with two months to spare, highlighting the country’s economic recovery.

* Codelco on Friday agreed a contract with a major Chinese buyer for 20,000-30,000 tonnes of annual copper supply at a premium of $88 a tonne in 2021, sources said.

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$1 = 6.5776 yuan Reporting by Mai Nguyen; Editing by Rashmi Aich

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