* China government releases 5 year plan for base metals
* China Q3 GDP +6.7 pct year on year, hits forecast
* China industrial output +6.7 pct, beats +6.4 pct f'cast
* Coming Up; U.S. Housing starts for Sept at 1230 GMT
(Adds comment, detail, updates prices)
By Melanie Burton
MELBOURNE, Oct 19 London copper was steady on
Wednesday after China's economic growth met expectations in the
third quarter, but an impending slowdown in real estate growth
painted a mixed outlook for copper demand.
China's economy grew 6.7 percent in the third quarter from a
year earlier, steady from the previous quarter, as increased
government spending and a property boom offset stubbornly weak
Industrial output and real estate investment growth,
bellwethers of metals demand, beat expectations, although
cities' measures to restrict home sales mean the demand growth
may cool in the months ahead.
China's new construction starts in September, measured by
floor area, were down 19.4 percent from a year ago, Reuters
calculations showed, a sharp deceleration from 3.3 percent in
"Overall it's still consistent with our China economists'
point of view that the economy is slowing but not going into a
hard landing," said analyst Amy Li of National Australia Bank in
"Base metals are used in infrastructure and real estate so
we will likely see demand slow for copper and aluminium as China
transitions into a more consumer focused economy."
Three-month copper on the London Metal Exchange was
little changed at $4,679.50 a tonne by 0250 GMT, after closing
steady in the past two sessions and holding above one-month lows
at $4,623.25 a tonne touched on Friday.
Other LME metals showed more vigour with zinc, lead
and tin all up around half a percent.
Shanghai Futures Exchange copper was also flat at
37,260 yuan ($5,529) a tonne.
Supporting metals, Chinese banks extended 1.22 trillion yuan
($181 billion) in new loans in September, well above
expectations and capping a record nine-month lending spree.
China's government also said it would strictly control the
expansion of its non-ferrous metals industry, encourage
consolidation and boost proven ore reserves as part of its
five-year development plan for the industry.
Supporting the dollar, U.S. consumer prices recorded their
biggest gain in five months in September, pointing to a steady
pickup in inflation that could keep the Federal Reserve on track
to raise interest rates in December. [nL1N1CO0I9
BHP Billiton on Wednesday said it was
seeing signs of recovery in commodities markets but cautioned
that supply was still running ahead of demand amid
stronger-than-expected steel consumption in China.
The total net long position of funds trading copper on the
London Metal Exchange fell to 36,019 lots last Friday from a net
long position of 38,602 lots the previous week, the LME's
Commitments of Traders Report (COTR) showed on Tuesday.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.7396 Chinese yuan renminbi)
(Reporting by Melanie Burton; Editing by Joseph Radford and