Copper slip on weak China data, but stimulus hopes offer support

BEIJING, June 7 (Reuters) - Copper prices in Londonslipped on Wednesday after data showing lower than expectedChinese exports in May, though a weaker dollar and hopes of moreeconomic stimulus in China lent some support.

Three-month copper on the London Metal Exchange wasdown 0.4% at $8,310 a tonne by 0714 GMT while the most-tradedJuly copper contract on the Shanghai Futures Exchangewas up 0.1% at 66,540 yuan ($9,335.67).

China's May exports fell more than expected year on year,indicating faltering global demand, while imports contracted ata slower pace, customs data showed on Wednesday.

The country's imports of unwrought copper and copperproducts in the first five months of the year fell 11% to 2.14million tonnes, the data showed.

The drop in imports contributed to a tight market as demandimproved after buyers benefited from recent price falls.

Market participants expect a less tight market this month,with some large smelters resuming production after maintenance.

Analysts at CITIC Futures pointed out a 70,000 tonnes supplygap in the refined copper market last month.

However, supply tightness is expected is to ease with risingcopper ore and concentrate stocks at ports, said analysts at5Guotai Junan.

Sentiment was bolstered, meanwhile, by hopes for morestimulus in the property sector. That improves the demandoutlook because construction is the main consumer of mostindustrial metals.

The U.S. dollar dipped on Wednesday, makingdollar-priced commodities more attractive for buyers with othercurrencies.

Among other metals, LME aluminium rose 0.3% to$2,216.50 a tonne, tin retreated by 0.3% to $25,535,zinc was up 0.8% at $2,337, lead gained 0.4% to$2,034 and nickel held steady at $20,975.

SHFE aluminium was little changed at 18,105 yuan atonne, zinc added 1.2% to 19,560 yuan, leadrose 0.7% to 15,165 yuan, nickel was up 0.1% at 159,090yuan and tin dipped 0.1% to 208,500 yuan.

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($1 = 7.1275 Chinese yuan renminbi)(Reporting by Siyi Liu and Dominique PattonEditing by David Goodman)