BEIJING, Aug 19 (Reuters) - Shanghai base metals ended the week lower on Friday as subdued demand, a stronger dollar and the prospect of more U.S. interest rate hikes outweighed support from lower supplies.
Nickel led the losses, with its most-traded September contract on the Shanghai Futures Exchange down 5.5% from last Friday's close at 171,580 yuan ($25,211.22) a tonne, after a four-week rally.
ShFE zinc and aluminium have lost 1.4% and 3% this week to 24,860 yuan and 18,425 yuan a tonne respectively, despite rallying at the start of the week on further production cuts by European smelters.
Power rationing in China's southwestern Sichuan province and Chongqing has affected production of lithium, aluminium and zinc, raising concerns about supply. Muted industrial activity could also weaken metals demand.
Market participants were waiting to see if Sichuan would extend its power curbs over the weekend, and whether power shortages would become a broader issue in the world's biggest metal producer and consumer.
Several provinces including Anhui, Zhejiang and Jiangsu have curbed industrial production to prioritise residential power usage, but the impact on metals production has been limited for now.
Xia Cong, an analyst at state-backed research house Antaike, said weak demand had dominated the market this week amid macro-economic pressures and the prospect of more Fed rate hikes.
Fed minutes showed officials were determined to curb rising prices by increasing interest rates, pushing the dollar to a one-month high.
ShFE copper has slipped 1.2% this week to 61,980 yuan a tonne, while lead has slid 2.3% to 14,960 yuan a tonne.
Three-month copper on the London Metal Exchange was down 0.2% on the day at $8,016 a tonne by 0754 GMT, after rising for the first time this week on Thursday.
LME zinc was up 1.1% at $3,510 a tonne, aluminium gained 0.2% to $2,406.50 a tonne, lead shed 0.4% to $2,064.50.
For the top stories in metals and other news, click or ($1 = 6.8057 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Jan Harvey)
