LONDON: Copper hit a 4-1/2 month peak on Friday, fuelled by strong growth in top copper consumer China, a weak dollar and worries about supply disruptions.
The dollar hit a two-year low against the euro, as the single currency rallied on bets the European Central Bank would tweak its policy stimulus in the autumn.
A weaker dollar makes dollar-priced copper cheaper for non-US investors.
Also helping copper, China's economy expanded faster than expected in the second quarter, data this week showed, setting the country on course to comfortably meet its 2017 growth target.
"Overall demand in China is not that bad at all," said Richard Fu, head of Asia and Pacific at LME Floor Member AMT.
"In general global economic figures are improving, there's supply disruptions here and there, plus the Chinese want to cut metal production in order to tackle pollution and over-capacity," he added.
FUNDAMENTALS
LME COPPER: Three-month LME copper traded up 1.3 percent at $6,035 a tonne in official midday rings, having hit its highest since March 1 at $6,051.
INVENTORIES: Copper inventories in Shanghai Futures Exchange-monitored warehouses fell 4.9 percent from last Friday to their lowest since January.
WAGE TALKS: Union-represented workers and management at Antofagasta's Zaldivar copper mine failed to reach a wage deal on Thursday and agreed to extend government-mediated talks into next week.
COPPER DEFICIT: The global world refined copper market showed a 53,000 tonne deficit in April, compared with an 18,000 tonne deficit in March, industry data showed.
CHINA FORECASTS: The Asian Development Bank raised its 2017 and 2018 growth forecasts for China and other countries in the region.
ALUMINIUM OUTPUT: Daily average primary aluminium output excluding China rose to 70,300 tonnes in June, from 70,000 tonnes in May, industry data showed.
"Although sweeping production cuts were announced in recent months, especially in China, they have not been implemented so far or have been offset by new capacities. We see no justification for the high aluminium price," said Commerzbank in a note.
ALUMINIUM PRICES: Aluminium traded up 0.5 percent in rings at $1,925.50.
NICKEL EXPORTS: Indonesia exported 403,201 tonnes of nickel ore in the first six months of 2017, when a complete ban on exports was lifted.
NICKEL MINING BAN: Philippine President Rodrigo Duterte said the government will draft a new law for the country's mining industry. Worries over supply from the Philippines have faded since the country's firebrand environment secretary was replaced in May.
NICKEL PRICE: LME nickel traded up 1.2 percent in rings at $9,610 a tonne.
SPREADS: Discounts of cash copper, aluminium and lead to their three-month contracts were near multi-year highs, signalling ample nearby supply.
US ECONOMY: Jobless claims fell more than expected to the lowest level in nearly five months, suggesting strong job gains that should continue to underpin economic growth.
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