LONDON, Oct 27 (Reuters) - Copper prices edged higher on
Tuesday on light bargain-hunting after three sessions of
declines, but more losses were expected as rising COVID-19 cases
threatened the global economy.
Volumes were light as investors waited for results from a
meeting this week on China's new five-year plan that is expected
to be positive for metals demand.
Three-month copper on the London Metal Exchange was
up 0.2% at $6,795 a tonne by 1710 GMT, after retreating in
recent days from a surge above the $7,000 level last week to its
highest in 28 months.
"I think there is more downside for copper, and the biggest
risk for metals right now is a stronger dollar due to
uncertainty building on many fronts," said Gianclaudio Torlizzi,
partner at consultancy T-Commodity in Milan.
"But in the mid- to long-term, whether Trump or Biden is
president, the outlook is positive for metals."
The most-traded December copper contract on the Shanghai
Futures Exchange closed down 0.5% at 51,650 yuan
($7,705.62) a tonne.
"The biggest factor is macro uncertainty as well as rising
COVID-19 cases, which also cast a shadow on the economic
recovery," said a Singapore-based copper analyst.
"The U.S. election could add to the risk aversion, while
hopes on the stimulus bill (have) also faded."
* The discount of cash LME nickel to the three-month
contract <CMNI0-3> fell to $32.50 a tonne, the weakest since
early September, indicating less availability of metal in LME
* COLUMN: Nickel surplus looms as electric vehicle buzz
* The net long speculative position in LME aluminum had
dipped to 5.2% of open interest as of last Thursday compared to
6.6% on Oct. 19, which was the strongest since April 2018,
broker Marex Spectron said in a note.
* LME aluminum fell 0.3% to $1,823 a tonne, zinc
rose 0.3% to $2,547, lead slipped 0.03% to
$1,780 and nickel gained 1.5% to $15,890.
* Tin added 0.2% to $18,090, after hitting its
lowest since Oct. 5 on Monday.
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($1 = 6.7029 yuan)
(Additional reporting by Mai Nguyen; Editing by Jan Harvey and