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METALS-Copper rebounds on stocks withdrawal signal, but weak China data cap gains
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METALS-Copper rebounds on stocks withdrawal signal, but weak China data cap gains
Sep 11, 2024 4:59 AM

(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.

For the top stories in metals and other news, click

or

($1 = 7.1190 yuan)

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