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BEIJING, Sept 30 (Reuters) - Most base metals rose on Friday after higher-than-expected China factory data buoyed demand outlook from the world’s biggest metal consumer, with sentiment aided by a possible ban on Russian metals delivered to the London Metals Exchange (LME).
The most-traded November copper contract on the Shanghai Futures Exchange climbed 0.5% to 61,080 yuan ($8,597.00) a tonne by 0532 GMT, while the three-month LME copper contract was flat at $7,539.50 a tonne.
China’s factory activity unexpectedly expanded in September, returning to growth after two consecutive months of contraction.
The official manufacturing Purchasing Managers’ Index (PMI) edged up to 50.1 in September, from 49.4 in August, data from the National Bureau of Statistics showed.
“The improved data buoyed market confidence,” said a Chinese copper tube producer source who anticipated rising demand and tight inventories to remain in the upcoming month.
Supply concerns were also raised after the LME said on Thursday it was mulling the possibility of banning new Russian metal from the list of brands that can be delivered against the exchange’s contracts.
Western countries have imposed sanctions on Russian banks and wealthy individuals connected to President Vladimir Putin since Russia’s invasion of Ukraine, but so far there are no restrictions on buying Russian metal.
Meanwhile, commodity group Glencore is reviewing the sustainability of lead operations at its Portovesme plant in Italy due to high power prices, an industry source with knowledge of the situation said on Thursday.
ShFE aluminium advanced 2% to 18,320 yuan a tonne, nickel was up 1.3% to 182,870 yuan a tonne, zinc gained 0.3% to 23,745 yuan a tonne, while tin lost 2.2% to 176,580 yuan a tonne.
LME aluminium was up 1.3% at $2,224.50 a tonne and zinc rose 1.1% to $2,963 a tonne, while lead dipped 0.1% to $1,874 a tonne.
For the top stories in metals and other news, click or ($1 = 7.1048 Chinese yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Uttaresh.V)
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