Copper dips on worry China economy overheating

Copper dipped on Thursday weighed down by a stronger dollar and concerns China might revalue the yuan or tighten monetary policy to head off possible overheating in its economy after robust growth data. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,899 a tonne in official mid-day rings from a close of $7,950 on Wednesday. LME copper stocks, seen as a signal of demand trends, rose 775 tonnes to total 510,425 tonnes, having fallen continuously since the beginning of March. Total stocks remain 8 percent below a February high of 555,025 tonnes. LME stocks fell 95 tonnes to 24,135 tonnes while cancelled warrants - material set to leave warehouses - rose 2,405 tonnes to total 2,835 tonnes. The move could indicate an uptick in demand for tin as the electrical solder industry improves. Stainless steel making ingredient nickel was at $26,665 from $26,400, having earlier hit its highest since May 2008 at $26,712. Nickel, the strongest performer on the LME this year, continues to benefit from supply tightness and a recovery in the stainless steel industry, which accounts for about two thirds of nickel demand. Aluminium was at $2,453 from $2,461, zinc was at $2,425.50 from $2,460, while battery material lead was at $2,306.50 from $2,360.