(Recasts, updates prices, adds quotes)
By Mai Nguyen
Sept 10 (Reuters) - Copper prices rose on Tuesday as a
potential drop in inventories and improving premium in top
consumer China lent support, although weak data from Beijing
raised demand outlook worry.
Three-month copper on the London Metal Exchange (LME)
rose 0.4% to $9,135 per metric ton by 0641 GMT,
rebounding from a 0.4% decline earlier in the day.
The most-traded October copper contract on the Shanghai
Futures Exchange (SHFE) advanced 1.6% to 73,260 yuan
($10,290.77) a ton.
Copper inventories in LME warehouses could see a fall soon
amid rising cancelled warrants that represent metal earmarked
for delivery.
The premium to import copper into China rose
to $65 a ton, an over 8-month high, signifying an improving
demand for copper imports into China.
"I don't think it (the price rebound) is sustainable. China
has deflationary pressure and weak growth. Import numbers are
weak, so prices should slide," said a trader, expecting LME
copper to fall to $8,450.
China's unwrought copper imports slid to a 16-month low in
August and total imports missed expectations, reflecting a weak
demand.
LME nickel was nearly flat at $15,905 and zinc
almost unchanged at $2,730, while aluminium rose
0.6% to $2,364.50 a ton, tin climbed 0.9% to $31,100 and
lead edged up 0.6% to $1,964.50.
SHFE nickel fell 0.6% to 121,780 yuan and lead
dropped 1% to 16,430 yuan, while zinc
increased 0.3% to 22,825 yuan and tin advanced 0.9% to
253,080 yuan.
Aluminium rose 1.3% to 19,410 yuan a ton, supported
by a production cut in Malaysia, said another trader.
A fire at Press Metal Aluminium has impacted about
3% of its annual smelting capacity and it will take four months
to restore the damage. The firm said its annual smelting
capacity is 1.08 million tons.
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($1 = 7.1190 yuan)