* Premium for zinc cash over 3-month at 21-year high
(Updates with closing prices)
By Pratima Desai
LONDON, Nov 21 (Reuters) - Copper prices rose on Wednesdayas a lower dollar and higher equities triggered fund buying, butworries about the U.S.-China trade dispute and about demandgrowth in top consumer China are expected to cap gains.
Benchmark copper
"The weaker dollar and the stock market recovery aresupporting factors," a commodity-focused fund manager said.
"Fears about global growth due to the trade dispute will bea negative for all assets that rely on growth."
TRADE: Worries about trade were further reinforced after theU.S. said China has failed to alter its "unfair" practices,ahead of a meeting next week between U.S. President Donald Trumpand Chinese President Xi Jinping.
DOLLAR: A fall in the dollar, which makes dollar-pricedcommodities cheaper for holders of other currencies, was helpingindustrial metals. The relationship is used by funds known ascommodity trading advisors (CTAs) which trade using buy and sellsignals from numerical models.
POSITIONS: Traders are keeping a close eye on positionsholding large amounts of LME copper warrants and cash contracts,which is fuelling nervousness about nearby availability.
This can be seen in the premium for the copper cash andthree-month contract, now around $22 a tonne
CHINA: The country accounts for nearly half of globaldemand, which is estimated at around 24 million tonnes thisyear.
"Fundamentals are little changed, amid steady demand andsomewhat sluggish supply, resulting in a broadly balancedmarket," Barclays analysts said in a note. "We forecast China toslow but not collapse and this to lead to lower rates of demandgrowth from a very large absolute base."
BALANCE: A recent Reuters survey showed the copper marketwas expected to see a small surplus of 13,500 tonnes this yearand a small deficit of 44,000 tonnes in 2019.
TECHNICALS: Strong support for copper comes in at$6,150-$6,160, near the 21-, 55- and 100-day moving averages.
ZINC: The premium for the zinc cash contract over thethree-month contract
At 123,275 tonnes, stocks have more than halved since Aug.13.
The three-month zinc
PRICES: Aluminium
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; editing by David Evans, JaneMerriman and Kevin Liffey) ((pratima.desai@thomsonreuters.com; +44 207 542 5113))
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