BEIJING: London copper prices were heading for a slight weekly gain on Friday, as investors weighed better demand prospects from top consumer China and supply headwinds against expectations of more rate hikes from the US Federal Reserve.

Three-month copper on the London Metal Exchange dipped 0.5% to $8,976.50 a tonne by 0353 GMT, after rebounding from a five-week low on Thursday.

The contract has gained 1.3% so far this week.

The dollar held onto gains against a basket of currencies on Thursday, as stronger-than-expected producer prices and falling jobless claims indicated the Fed would have to maintain interest rates higher for longer.

Hopes for a recovery in China demand grew as a build-up in metals stocks slowed this week, lending some support to the market.

First Quantum Minerals Ltd has warned employees it may have to shutter operations in Panama if the government does not allow its copper exports to resume by next week, according to a memo sent to staff and seen by Reuters.

The better fundamentals offset concerns of a more hawkish stance by the Fed, ANZ Research said in a note.

The most-traded March copper contract on the Shanghai Futures Exchange rose 1.1% to 69,040 yuan ($10,039.26) a tonne.

Copper gains on supply disruptions, Fed rate-hike concerns weigh

LME aluminium gained 0.3% to $2,401.50 a tonne, zinc moved up 0.7% to $3,023.50, tin lost 1.1% at $26,715, and lead was up 0.9% at $2,048.

SHFE aluminium rose 0.7% to 18,515 yuan a tonne and tin increased 0.5% to 213,140 yuan a tonne and nickel climbed 0.4% to 205,000 yuan a tonne, while lead shed 0.2% to 15,140 yuan a tonne.