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By Polina Devitt

LONDON, July 2 (Reuters) - Copper prices rose on

Wednesday as a stronger yuan currency in top metals consumer

China and weak dollar offset uncertainty about global trade

tensions.

Three-month copper on the London Metal Exchange was

up 0.2% at $9,951 a metric ton by 1025 GMT.

The metal, used in power and construction, started the

second half of 2025 by testing the key psychological mark of

$10,000 for the first time in three months on Tuesday as strong

manufacturing data in top consumer China improved sentiment.

This spike was also due to a persisting premium in U.S.

copper futures amid expectations that copper would

eventually be subject to the Section 232 import tariffs in the

United States, assuming that the ongoing investigation will

conclude that imports are threatening U.S. national security,

said analyst Carsten Menke at Julius Baer.

These expectations have caused a surge in U.S. copper

imports this year, tightening the availability of the metal

outside the U.S. and prompting the

nearby LME copper contracts to trade at a premium over those

with longer maturities.

Goldman Sachs said in a note that it expects China's 2025

demand for refined copper to rise by 6% and sees upside risks to

its August LME copper forecast of $10,050 as China and the U.S.

compete for copper.

In the longer term, Julius Baer expects the global copper

market to be sufficiently supplied this year and is concerned

about the demand outlook due to pre-buying from U.S. importers.

Meanwhile, the U.S. dollar languished near its lowest since

February 2022 on Wednesday as traders considered the potential

impact of President Donald Trump's spending bill, and looming

trade tariff deadlines. The yuan was near an eight-month high

against the dollar amid hopes for an easing of U.S.-China trade

tensions.

LME aluminium fell 0.2% to $2,593.50 a ton, zinc

rose 0.4% to $2,725.50, lead climbed 0.4% to

$2,046.50, tin lost 0.6% to $33,430 and nickel

gained 0.1% to $15,220.