(Updates with closing prices)By Peter HobsonLONDON, April 25 (Reuters) - Copper prices fell on Thursdayas worries over the global economic outlook increased and theU.S. dollar hit its strongest in almost two years, making metalsmore expensive for buyers with other currencies.
Benchmark copper on the London Metal Exchange (LME)ended down 1.3 percent at $6,364 a tonne after touching itslowest since March 28.
The metal used in power and construction has been stuckbelow around $6,550 since the end of February but is still upnearly 7 percent this year.
"There's still quite a bit of uncertainty (about economicgrowth)," said ING analyst Warren Patterson.
But he predicted that tight supplies and a likely U.S.-Chinatrade deal would help lift copper to around $6,900 at the end ofthe year.
LME STOCKS: Copper stocks in LME-registered warehouses roseby 8,675 tonnes to 194,800 tonnes, nearing 7-month highs touchedearlier this month. SPREAD: The discount for cash copper against the three-monthcontract on the LME, however, shrank to $6.50 from $28 on April18, suggesting less metal is immediately available. SHFE STOCKS: Copper stocks on the Shanghai Futures Exchange(ShFE), at 236,734 tonnes, have dipped in recent weeks but arestill much higher than at the start of the year. DEFICIT: Analysts expect another deficit in the refinedcopper market this year. There were shortfalls of 387,000 tonneslast year and 265,000 tonnes in 2017, according to theInternational Copper Study Group.FREEPORT/ANGLO: Freeport-McMoRan Inc's copper outputfell 18 percent to around 340,000 tonnes in the first quarter,while Anglo American's production rose by 4 percent to161,100 tonnes.DOLLAR: The U.S. dollar hit its highest since May 2017against a basket of major currencies, with the U.S. economyseeming stronger than those of other countries. GERMANY: Data showing German business morale deteriorated inApril has underlined fears that growth around the world isslowing. JAPAN/CENTRAL BANKS: Japan's central bank lowered growthprojections for 2020 and joined many other central banks,including Indonesia's and Sweden's on Thursday, in delayinginterest rate rises.CHINA: China, the world's largest consumer of metals, hashowever seen an improvement in economic data in recent months, apositive sign for metals demand.ZINC: LME zinc finished flat at $2,741 a tonne. Thepremium for cash metal over the three-month contract jumped to$124, the highest since December, signalling a shortage ofnearby metal. OTHER METALS: LME aluminium closed down 0.8 percentat $1,857 a tonne, lead rose 0.4 percent to $1,932 andtin gained 0.6 percent to $19,820. Nickel did not tradebut was bid 0.7 percent lower at $12,320.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson; additional reporting by Tom Daly inBeijing; Editing by Jan Harvey and David Evans)