(Updates prices)LONDON, Jan 26 (Reuters) - Copper rose on Tuesday as thedollar weakened, making metals cheaper for buyers outside theUnited States, but the slow progress of U.S. stimulus measuresand concerns about Chinese demand capped gains.China, whose copper consumption lifted prices to eight-yearhighs earlier this month, is gearing up for a week-long New Yearholiday in February while battling a coronavirus outbreak andtightening liquidity in the lending market.
Benchmark copper on the London Metal Exchange (LME)was up 0.3% at $7,990.50 a tonne at 1731 GMT.
The metal used in power and construction has hovered around$8,000 since slipping from a high of $8,238 on Jan. 8.
"Some market players may be taking profits or waiting fornew impetus," said Commerzbank analyst Daniel Briesemann, addingthat Chinese demand typically rises after its New Yearcelebrations and this could lift prices.
But China's demand overall will weaken in 2021 because itimported more copper last year than it needed, he said,predicting prices around $7,000-$7,500 by the year-end.
GLOBAL MARKETS: Stock markets were mixed as concerns aboutthe delivery of a $1.9 trillion U.S. stimulus package weighed onsentiment. The dollar weakened, making metals cheaper for buyersoutside the United States. CHINA MARKETS: China's blue-chip stock index suffered itsbiggest daily loss since September as short-term borrowing ratesjumped to pre-COVID levels. FACTORIES: COVID-19 outbreaks in northern China will notlead to manufacturing shutdowns, an official said. GROWTH: The International Monetary Fund raised its forecastfor global economic growth in 2021. SUPPLY: The world's copper mines struggle to recover fromCOVID-19, writes columnist Andy Home. TIN: Benchmark tin was up 1.7% at $22,840 a tonneafter reaching $22,900, its highest since 2014. Tin is in its13th straight week of gains as stockpiles in LME-registeredwarehouses near record lows.ALUMINIUM: LME aluminium was 0.4% higher at $2,020 atonne as the premium for cash metal over the three-monthcontract rose to $8, the most since December 2019, pointing totight nearby supply. ZINC: Zinc was down 2% at $2,652.50 a tonne afterinventories in LME-registered warehouses leaped 24% to 235,025tonnes, the most since September 2018. OTHER METALS: Nickel was down 0.9% at $18,080 atonne and lead was 1.3% higher at $2,074.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Industrial metals ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter HobsonAdditional reporting by Mai Nguyen, editing by Louise Heavensand David Evans)