Copper and most other industrial metals inched higher on Friday, boosted by a retreat in the dollar and hopes that a meeting between the United States and China could help ease damaging trade tensions. Three-month copper on the London Metal Exchange ended 0.6 percent higher at $6,400 a tonne, although it finished the week more than 1 percent lower.
The metal used in power and construction hit its lowest since March 28 on Thursday on a strong US dollar and worries over the outlook for the global economy.
"The dollar has been pretty strong lately which has been quite a drag, and that has now reversed a bit," Capital Economics analyst Ross Strachan said, adding that the market generally is "fairly quiet".
He said metals markets were mostly pricing in a resolution to a long-standing trade conflict between China and the United States as the world's two largest economies prepare for talks.
The dollar index eased versus a basket of six major currencies on Friday after weak US inflation data eclipsed upbeat first-quarter figures.
A weaker greenback makes dollar-denominated metals cheaper for buyers with other currencies.
"We believe prices will witness limited upside in the coming weeks unless a US-China trade deal is finally struck, as concerns over global growth continue," Fitch Solutions said in a report.
Total copper inventories in LME-approved warehouses have jumped more than 70 percent since mid-March to 195,900 tonnes.
Aluminium inventories in warehouses monitored by the Shanghai Futures Exchange fell to the lowest since October 2017 at 638,030 tonnes, while copper stocks hit a two-month low of 219,679 tonnes.
The premium of cash zinc over the three-month contract has been steadily rising this year and reached about $120 on Friday, showing low availability of supplies in LME-approved warehouses.
Goldman Sachs said it expects industrial metals demand to rise on easing measures, adding that it was clear that China had "taken the foot off the accelerator" to a degree.
China National Machinery Industry Co, known as Sinomach, said its subsidiary had agreed a $74.38 million contract to build a 80,000 tonne-per-year ferronickel plant in Indonesia.
Aluminium was the sole decliner, ending 1 percent lower at $1,837 per tonne, while zinc rose 1 percent to $2,76871, lead gained 1 percent to $1,952 a tonne. Tin finished 0.5 percent higher at $19,925, and nickel was up 0.9 percent at $12,440 a tonne in electronic trading at 1600 GMT.
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