Sept 23 (Reuters) - Copper prices declined on Wednesday as a strengthening U.S. dollar made greenback-priced commodities more expensive for holders of other currencies.
The three-month copper on the London Metal Exchange fell 1.1% to $6,702.50 a tonne by 0703 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange dipped 0.6% to 51,430 yuan ($7,571.81) a tonne.
The dollar held onto gains against major currencies on Wednesday, supported by positive U.S. economic data and concerns about a second wave of coronavirus infections in Europe and Britain.
"It's the strong U.S. dollar (behind copper's price fall). There's also a sell-off in technology equities, gold and silver, pulling down copper. But this is still a buy-the-dip moment for copper," said a Singapore-based metals trader.
"In the near term, we're waiting for a new fiscal stimulus to be passed. But because we're so close to the U.S. presidential election, I think it's unlikely that anything can get done," the trader said.
FUNDAMENTALS
* The premium of LME cash copper over the three-month
contract
* The premium of ShFE cash zinc over LME cash zinc rose to $201.04 a tonne, its highest since January 2019.
* China's 1.4%-1.5% nickel ore prices
* LME nickel fell 0.8% to $14,485 a tonne, lead declined 0.8% to $1,869 a tonne and zinc dropped 1.4% to $2,430.50 a tonne. ShFE aluminium fell 1.7% to 14,345 yuan a tonne and zinc was down 1.2% to 19,520 yuan a tonne.
* For the top stories in metals and other news, click or
($1 = 6.7923 yuan) (Reporting by Mai Nguyen; editing by Uttaresh.V)