London metal prices eased on Monday alongside an uptick in the US dollar and as ongoing global trade tensions cloud the outlook for demand.

London Metal Exchange copper had edged down 0.2 per cent to $6,291 a tonne by 0202 GMT, following a 1 per cent gain in the previous session. Prices have traded in a $6,090-6,400 range for the past three weeks. Shanghai Futures Exchange copper climbed 0.6 per cent to 50,790 yuan ($7,340) a tonne.

LME copper stocks have dropped since August as ShFE stocks have climbed, reflecting higher imports to the world's top metals consumer after a crackdown on waste imports that cut the availability of scrap metal. The US dollar firmed against the pound and euro on Monday as British efforts to secure a Brexit deal ahead of a key European Union summit fanned the demand for safe-haven currency.

China's property developers usually look forward to the months dubbed “Golden September and Silver October” as the high season for new home sales. This year is proving to be different, which may temper metals demand. Illustrating a significant shortfall in near-term supply, nearby prices to obtain lead and zinc over the next few months have surged over those further out.

Zinc spreads are tightening as more metal arrives in warehouses in China. ShFE warehouse inventories showed that zinc arrivals jumped by 14,169 tonnes, or 48.5 per cent, over the past two weeks to 43,373 tonnes. Copper arrivals jumped by 12 per cent, or 13,703 tonnes, to 125,700 tonnes.

Hedge funds and money managers increased their bearish wagers on Comex copper contracts in the week to October 9, the US Commodity Futures Trading Commission had said on Friday.

Asian shares slipped on Monday as worries over Sino-US trade disputes, a possible slowdown in the Chinese economy and higher US borrowing costs tempered optimism despite a rebound in global equities late last week.

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