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Copper prices rose to their highest in more than a week on Tuesday as strong factory data from China and plans to cut production by smelters in the top consumer triggered buying, though gains were capped by a strong dollar.
Benchmark copper on the London Metal Exchange (LME) traded up 1.8% at $9,023 a metric ton in official rings. Prices of the metal used in the power and construction industries earlier touched $9,038 for its highest since March 21.
China's top copper smelters last month agreed plans to cut production at some loss-making plants because of shortages of raw material and historically low fees for converting concentrate into refined metal.
Surveys of purchasing managers in China showed manufacturing activity expanded for the first time in six months in March while new export orders showed growth after 11 months of contraction.
"We saw much better data from China over the weekend and yesterday we had some very positive manufacturing numbers from the U.S.," one copper trader said. "But the dollar is higher and geopolitical tensions mean cautious trading."
U.S. manufacturing expanded for the first time in 1-1/2 years in March as production rebounded sharply and new orders increased. But prices paid by manufacturers climbed at a faster pace and reinforced concern about inflationary pressures, which could delay interest rate cuts by the Federal Reserve.
Higher interest rates in the United States make for a robust U.S. currency, making dollar-priced commodities more expensive for buyers holding other currencies.
Elsewhere, aluminium climbed to a three-month peak at $2,387.50 a ton as funds bought the metal used in the transport, packaging and construction industries.
One trader said the higher premiums that Japanese buyers were having to pay had boosted sentiment in the aluminium market, creating momentum for higher prices.
Aluminium was last up 1.1% at $2,362.5 a ton.
In other metals, zinc jumped 2% to $2,487 a ton, lead slipped 1% to $2,034, tin advanced 1.4% to $27,825 and nickel climbed 2% to $17,085.
(Reporting by Pratima Desai; Editing by David Goodman)