Recasts, updates prices
BEIJING, July 3 (Reuters) - Copper prices climbed on Wednesday, thanks to a softer dollar amid renewed hopes of U.S. rate cuts and as supply jitters offset a dismal outlook for physical demand from top consumer China.
Three-month copper on the London Metal Exchange was up 1.5% to $9,815 per metric ton by 0738 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange was up 1.2% to 79,630 yuan ($10,947.96) a ton.
The dollar remained on Wednesday after dovish comments from Federal Reserve Chair Jerome Powell sent U.S. bond yields lower, overshadowing a strong domestic jobs report.
The reinforced rate-cut expectations enhanced investors' appetite in the equity market and brightened the overall demand prospect for metals.
Also supporting copper was tightness in the raw materials markets. The sector's structurally positive backdrop made most people "buy the dip", Macquarie said in note on July 1.
Miner Freeport McMoran said on Tuesday it expects quarterly sales to be due to a delay in obtaining an export license for its Indonesian subsidiary.
China's services activity expanded at the slowest pace in eight months and confidence hit a four-year low in June, dragged by slower growth in new orders, showed on Wednesday.
China's apparent copper demand for the first half grew 2%, and the full-year demand is likely to contract 0.5% given a high second-half base effect, Macquarie said.
LME zinc increased 1.5% to $2,966 a ton, lead added 0.8% to $2,219, and nickel was 1.4% higher at $17,235, tin nudged 0.3% higher to $33,025, aluminium advanced 0.7% at $2,540.
SHFE zinc gained 0.5% to 24,555 yuan a ton, aluminium ticked 0.7% higher to 20,490, nickel climbed 0.2% to 137,880 yuan, while lead was down 0.8% to 19,500 yuan and tin little moved at 273,620 yuan.
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($1 = 7.2735 Chinese yuan renminbi)
(Reporting by Siyi Liu and Mei Mei Chu; Editing by Rashmi Aich, Janane Venkatraman and Savio D'Souza)
((Siyi.Liu@thomsonreuters.com [Siyi.Liu@thomsonreuters.com];))
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