LONDON, Nov 21 (Reuters) - Copper prices rose on Wednesday
as a lower dollar and higher equities triggered fund buying, but
worries about the U.S.-China trade dispute and demand growth in
top consumer China are expected to cap gains.
    Benchmark copper         on the London Metal Exchange traded
up 0.5 percent at $6,218 a tonne in official rings. The price of
the metal used widely in the power and construction industries
hit a two-week high of $6,296 on Tuesday.
    "The weaker dollar and the stock market recovery are
supporting factors," a commodity-focused fund manager said.
    "Fears about global growth due to the trade dispute will be
a negative for all assets that rely on growth."
    
    TRADE: Worries about trade were further reinforced after the
U.S. said China has failed to alter its "unfair" practices,
ahead of the meeting next week between U.S. President Donald
Trump and Chinese President Xi Jinping.             
    DOLLAR: The weaker U.S. currency, which makes dollar-priced
commodities cheaper for holders of other currencies, was helping
industrial metals. The is a relationship used by funds known as
commodity trading advisors (CTAs) which trade using buy and sell
signals from numerical models.
    POSITIONS: Traders are keeping a close eye on positions
holding large amounts of LME copper warrants and cash contracts,
which is fuelling nervousness about nearby availability.
    This can seen in the premium for the copper cash and
three-month contract at around $22 a tonne CMCU0-3.
    CHINA: The country accounts for nearly half of global demand
estimated at around 24 million tonnes this year.
    "Fundamentals are little changed, amid steady demand and
somewhat sluggish supply, resulting in a broadly balanced
market," Barclays analysts said in a note. "We forecast China to
slow but not collapse and this to lead to lower rates of demand
growth from a very large absolute base."
    BALANCE: A recent Reuters survey showed the copper market
was expected to see a small surplus of 13,500 tonnes this year
and a small deficit of 44,000 tonnes in 2019.                  
    TECHNICALS: Strong support for copper comes in at
$6,150-$6,160 near the 21-, 55- and 100-day moving averages.
    ZINC: The premium for the zinc cash over the three-month
contract hit a 21-year high of $97 a tonne due to
falling stocks in LME registered warehouses on Tuesday. It was
trading around $94 on Wednesday             
    Stocks at 123,275 have more than halved since Aug. 13.
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