(Adds analyst comment, updates prices, changes dateline)
By Eric Onstad
LONDON, Jan 10 (Reuters) - Benchmark copper prices
touched the highest in nearly a month on Friday, propelled by
firmer demand in top metals consumer China, while U.S. prices
held their premium over London ahead of expected U.S. tariffs.
Three-month copper on the London Metal Exchange
(LME) was up 0.5% at $9,121 per metric ton by 1100 GMT, after
touching $9,145, the highest since Dec. 12.
"The broader backdrop looks slightly bearish, but China
looks good actually in terms of demand for base metals at the
moment so that's probably helping to push prices up a bit," said
Dan Smith, head of research at Amalgamated Metal Trading.
The most-traded February copper contract on the Shanghai
Futures Exchange (SHFE) added 0.8% to 75,270 yuan
($10,264.73) a ton.
Firmer Chinese demand was highlighted by a spike in the
premium paid over SHFE prices to buy copper in the spot market
to 145 yuan, the highest since September and
compared to a discount of 40 yuan on Dec. 30.
"The other thing is the fear about inflation is building, so
that's going to be good for metals generally," Smith added.
Investors often turn to commodities as a hedge against
rising prices.
U.S. Comex copper futures gained 0.5% to $4.33 a lb,
or $9,546 per ton, a premium of $425 a ton over the LME.
Comex prices reflected investors attempting to price in the
impact of hefty tariffs that U.S. President-elect Donald Trump
has vowed to impose on China and other countries.
Also helping to support base metals was a slightly weaker
dollar index, taking a breather from recent strength
underpinned by elevated bond yields and expectations of another
strong set of U.S. job numbers later on Friday.
A weaker dollar makes it less expensive for holders of other
currencies to buy greenback-priced commodities.
Among other metals, LME aluminium rose 1.6% to
$2,579 a ton, nickel added 0.1% to $15,490, zinc
climbed 1.6% to $2,894, lead gained 2.2% to $1,969 and
tin advanced 0.8% to $30,100.
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($1 = 7.3319 Chinese yuan)