LONDON: Copper and other industrial metals prices extended losses on Friday, hit by a stronger dollar and more trade tensions between the world's two largest economies.
Aluminium, zinc and lead held in positive territory in early trading after growth in China's manufacturing sector unexpectedly picked up in August after a two-month slide.
But they lost steam and five out of six main industrial metals ended open outcry trading in the red on the London Metal Exchange.
Metals were initially pressured along with global share markets after a report that US President Donald Trump has told aides he is ready to impose tariffs on $200 billion more in Chinese imports.
A rebound in the dollar index also weighed on the complex in afternoon trading.
Copper has recovered from a 15-month low of $5,773 a tonne touched on Aug. 15, but is still a long way off its 2018 peak of $7,348 hit in early June.
On Friday, benchmark LME copper fell for a third straight session and closed down 1.5 percent at $5,975 a tonne.
LME copper slumped 5.1 percent in August after a 4.9 percent slide in July.
"In the short term, we are going into Q4, which is seasonally stronger. But how far can the rebound go when you've got all these worries about trade tensions?" said Robin Bhar, head of metals research at Societe Generale.
"And are we going to get headwinds from the fact that Chinese and global growth may have peaked and are now slowing?"
COPPER PREMIUMS: Copper has been supported by robust Chinese import premiums for physical metal at about $84 a tonne, down from last week's near two-year high of $86 a tonne.
INVENTORIES: Copper inventories in warehouses monitored by the Shanghai Futures Exchange (ShFE) fell 5.9 percent from the previous week, while on-warrant LME copper stocks declined 4,600 tonnes to the lowest levels in about a year, data showed on Friday.
ZINC: Zinc ended down 0.4 percent at $2,457 a tonne, after falling 1.8 percent in the previous session.
NICKEL: Nickel finished 3.7 percent weaker at $12,800 a tonne as Chinese traders went short on the ShFE, while in Europe, CTAs (Commodity Trading Advisors) have also been selling, Alastair Munro at broker Marex Spectron said in a note.
ALUMINIUM: Aluminium slipped 0.4 percent to $2,124.50 a tonne. "A move beyond $2,171/$2,175 will pave the way for an extended recovery," Stephanie Aymes, head of technical analysis at Societe Generale, said in a note.
PRICES: Lead, the only metal to stay in the black, edged up 0.3 percent to close at $2,078 a tonne, while tin shed 1 percent to $19,000.
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