Copper drops to two-week low on higher dollar

London, Jan 3 (Reuters): Copper prices slid to a two-week low on Wednesday as the dollar rose and worries about demand in top consumer China were reinforced by weak data from the country's industrial sector.

Three-month copper on the London Metal Exchange (LME) dipped to $8,461 per metric ton, the lowest since Dec. 19. It was last trading at $8,479 a ton, down 0.8 per cent in official rings.

China's manufacturing activity shrank for a third straight month in December and weakened more than expected, clouding the outlook for the country's economic recovery. Its official purchasing managers' index (PMI) fell to 49.0 in December from 49.4 the previous month.

The US currency climbed again on Wednesday after jumping the previous day, making dollar-priced metals costlier for buyers using other currencies.

LME aluminium extended its decline from Tuesday to slip 1.5 per cent to $2,301 a ton, with stock levels climbing to a six-month high.

Zinc shed 1.1 per cent to $2,292, nickel lost 0.5 per cent to $16,695, tin went up 0.1 per cent to $25,200 and lead lost 0.3 per cent to $2,058.