(Updates with closing prices)By Peter HobsonLONDON, June 24 (Reuters) - Copper prices slipped on Mondayas doubts over the outcome of U.S.-China trade talks later thisweek overshadowed the effect of a weaker dollar and supplydisruption in Chile.
Benchmark copper on the London Metal Exchange (LME)closed 0.2% lower at $5,960 a tonne, down from a one-month highof $6,027 on Thursday.
The metal used in power and construction had recoveredslightly in recent weeks after tumbling 15% between mid-Apriland mid-June as U.S. President Donald Trump ramped up disputeswith China and Mexico.
Investors fear trade confrontations will damage economicgrowth and metals demand.
Investors are waiting for a meeting between Trump and hisChinese counterpart Xi Jinping at a G20 summit on June 28-29,said Commerzbank analyst Daniel Briesemann. A trade deal or truce would push prices higher, whilefailure to agree would drag copper down, he said.
"Scepticism among speculative investors in particular isstill very high. These investors are still betting on lowercopper prices," he said.
TRADE WAR: Both China and the United States should makecompromises in trade talks, Chinese Vice Commerce Minister WangShouwen said on Monday. CHINA DEMAND: "The latest Chinese macro data remainconcerning for commodities demand into 3Q with property newstarts slowing and infrastructure spending remaining subdued,"analysts at Citi said in a note.
China is the world's largest metals consumer.
U.S. ECONOMY: U.S. manufacturing activity barely grew inearly June and the service sector cooled. GERMANY: German business morale deteriorated for the thirdmonth in a row in June.DOLLAR: The dollar weakened further on Monday after slipping1.4% last week, making dollar-priced metals cheaper for buyerswith other currencies.TECHNICALS: Signals are mixed for LME copper, as it failedto break resistance at $5,989 per tonne. POSITIONING: Speculators' net short position in LME copperfell to 3.5% of open contracts as of Thursday's close, brokersMarex Spectron said.
CHILE STRIKE: Labour unions at Chile's huge Chuquicamatacopper mine voted on Saturday to reject a contract offer andcontinue their week-long strike. CHINA SCRAP: China's imports of scrap metal in May rose 8.6%from the previous month to 380,000 tonnes, customs data showedon Sunday, with scrap aluminium imports the highest since March2018. The Chinese environment ministry has also granted 240,000tonnes of quotas for imports of high-grade scrap copper, whichis being restricted from July 1. ZINC: LME zinc rose 2.4% in closing open-outcrytrading to $2,491 a tonne after touching $2,412, the weakestsince Jan. 4, on Friday.
OTHER METALS: LME aluminium ended up 1.4% at $1,793a tonne, nickel gained 0.4% to $12,140, lead rose 0.7% to $1,913 and tin closed 0.4% higher at$19,075.
(Reporting by Peter Hobson; additional reporting by Muyu Xu andShivani Singh; editing by David Evans, Louise Heavens and JanHarvey)