METALS-Most base metals trade lower as firmer US dollar weighs

Updates prices and adds quote

By Violet Li and Mei Mei Chu

SHANGHAI, Jan 6 (Reuters) - Most base metals traded lower on Monday, pressured by a strong U.S. dollar and potential cues from U.S. economic data, although optimism from China's policy meeting last week helped limit the losses.

China's central bank announced plans to cut the reserve requirement ratio and interest rates at an opportune moment in a statement from its quarterly monetary policy committee meeting on Friday.

The decision highlights a broader strategy to stimulate growth in the world's second-largest economy, currently impacted by a struggling property sector affecting consumer wealth and household expenditure.

The U.S. dollar hovered near a two-year high, with traders eagerly awaiting this week's U.S. economic data. The focus is on December's non-farm payrolls report, which could provide insights into the Federal Reserve's interest rate plans.

A stronger dollar makes greenback-priced commodities more expensive for holders of other currencies.

"Looking at the fundamentals of copper, despite recent sustained low prices, there hasn't been substantial growth in end-user demand. This can be attributed to the seasonal factors during winter, especially with the approaching Chinese New Year, traditionally a period of slower activity," a trader said.

Three-month copper on the London Metal Exchange (LME) was relatively unchanged at $8,873.5 per metric ton, as of 0722 GMT.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 rose 0.8% to 73,600 yuan ($10,042.16) a ton by the end of the Asian afternoon trade session.

LME aluminium CMAl3 slid 0.5% to $2,481 a ton, nickel CMNI3 fell 0.7% to $15,010, zinc CMZN3 lost 0.2% to $2,881, tin CMSN3 slid 0.4% to $29,005, while lead CMPB3 traded 0.3% higher at $1,929.

SHFE aluminium SAFcv1 eased 1.7% to 19,565 yuan a ton, nickel SNIcv1 fell 0.5% to 122,260 yuan, zinc SZNcv1 retreated 1.1% to 24,490 yuan and lead SPBcv1 remained relatively unchanged at 16,730 yuan, while tin SSNcv1 rose 1.5% to 246,660 yuan.

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($1 = 7.3291 Chinese yuan renminbi)

(Reporting by Violet Li and Mei Mei Chu; Editing by Janane Venkatraman, Sherry Jacob-Phillips and Sumana Nandy)

((Violet.Li@thomsonreuters.com;))

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