BEIJING, Dec 2 (Reuters) - Copper retreated on Friday after data showed a fall in global industrial output, but the benchmark contract was set for a weekly gain on expectations of slower pace of U.S. interest rate hikes and of strengthening demand prospects in China.
Three-month copper on the London Metal Exchange was down 0.2% at $8,318 a tonne by 0206 GMT, having gained 3.9% so far this week.
The most-traded January copper contract on the Shanghai Futures Exchange climbed 0.2% to 65,750 yuan ($9,316.99) a tonne.
Risk appetites dimmed after data on Thursday showed that U.S. manufacturing activity contracted for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand.
Globally, factory output fell in countries including China, Japan and South Korea, although the downturn eased in Europe.
During the week, the market's outlook was brightened after U.S. Federal Reserve Chair Jerome Powell said rate increases could slow "as soon as December".
The U.S. dollar dipped to 16-week lows, supporting metals prices as it becomes cheaper for non-dollar holder to buy the greenback-priced commodity.
Another supporting factor was hopes of rising demand from the world's top metals consumer China following signs of its easing COVID-19 curbs and the latest supports to its property sector.
Among other metals, aluminium edged 0.1% down at $2,482.5 a tonne, zinc lost 0.7% to $3,059 a tonne, lead slid 0.3% to $2,168 a tonne, while tin declined 0.8% to $23,140 a tonne.
SHFE aluminium added 0.2% to 19,165 yuan a tonne, nickel nudged 0.3% to 201,700 yuan a tonne, zinc gained 0.5% at 24,415 yuan a tonne, and tin gained 0.3% to 187,210 yuan a tonne.
For the top stories in metals and other news, click or ($1 = 7.0570 Chinese yuan) (Reporting by Siyi Liu and Dominique Patton; editing by Uttaresh.V)
