MELBOURNE: London copper edged lower on Friday, after a US labour report boosted the dollar, with prices set to close the week little changed amid the Lunar New Year holiday in top consumer China.
"We'll probably have to wait until after Chinese New Year to really get a sense of how things are going on the ground in China," said analyst James Glenn of National Australia Bank in Melbourne. "We're looking at slowing demand growth for copper."
Three-month copper on the London Metal Exchange slipped 0.2 percent to $5,737 a tonne by 0344 GMT after closing almost flat in the previous session. A rally from 5-1/2-year lows touched in January has run out of steam with top user China away from the market.
LME nickel hovered near one year lows of $13,910 plumbed on Thursday, when it fell 2 percent.
"Below $13,900 there is interest, but I am waiting until China reopens," said a physical trader in Singapore.
China's stock, bond, foreign exchange and commodity futures markets are closed from Feb. 18 to Feb. 24 for the Lunar New Year holiday. Markets will resume trade on Feb. 25.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, offering fresh evidence that the labour market was gathering steam and lifting the dollar against major currencies.
A cyclone in north east Australia will pass close to Rio's Gove bauxite mining operation. It is also threatening to disrupt BHP Billiton's Groote Eylandt manganese mine and Glencore's McArthur River zinc and lead mine, giving some support to other metals.
The number of open forward copper contacts on the LME surged to a record ahead of the Lunar New Year, with most investors betting that dwindling supplies will push up prices despite slower demand from China.
Germany rejected a Greek proposal for a six-month extension to its euro zone loan agreement on Thursday, saying it was "not a substantial solution".
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