Copper prices fell on Wednesday as the dollar gained ground amid concerns about the Chinese economy, the world's largest metals consumer, while nickel extended gains.

Panama's president said the Cobre Panama copper mine will be closed for the time being, which is alone responsible for 1% of global production, after the Supreme Court declared the contract with the First Quantum company unconstitutional.

In Peru, workers continue to strike in copper mines in protest of low wages.

The dollar index rebounded off three-month lows today, making dollar-denominated commodities costlier to holders of other currencies.

Chinese stocks declined on Wednesday, while a Reuters survey indicated another likely contraction in the Chinese manufacturing sector for another month in November.

Despite that, the Shanghai copper futures surged by the most in five months, while nickel rose 1.4% at the London Metals exchange to $16,995 a tonne.

Nickel prices tumbled 43% so far this year, making it the worst performing major industrial metal this year.

Aluminium fell 0.3% at the London Metals Exchange fell 0.3% to $2211.50 a tonne, while lead fell 1.2% to $2128.50, as zinc lost 1% to $2512, while tin remained at $23,330.

Otherwise, the dollar index rose 0.2% as of 15:44 GMT to 102.9, with a session-high at 103.01, and a low at 102.4.

Nickel spot prices rose 2.5% as of 15:45 GMT to $16.8 thousand a tonne.