October 22, 2018 / 4:42 AM / in 23 days

METALS-Copper climbs for second day after China liquidity pledge

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Oct 22 (Reuters) - London copper prices rose for a
second session on Monday, extending a rally fuelled by a pledge
from China's central bank that it would support firms with
liquidity problems.
    The pledge was followed by comments from Chinese President
Xi Jinping on Sunday that the ruling Communist Party would
always support private-sector firms.
    China is "multiplying its efforts to support the economy,
and in particular, the infrastructure sector amid domestic and
international headwinds," such as the trade war with the United
States and high debt levels, Fitch Solutions said in a note.
    The country's demand for copper, an economic bellwether,
"will improve over the coming months as property completions and
grid investment picks up and demand from the autos and consumer
sectors remain buoyant," added the research house. 
           
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
Exchange was up 1 percent at $6,281 a tonne, as of 0706
GMT, extending a 1 percent jump from the previous session.
    * SHFE COPPER: The most-traded December copper contract on
the Shanghai Futures Exchange closed 1.1 percent higher
at 50,510 yuan ($7,286.71) a tonne.
    * COPPER PREMIUMS: China's copper import premiums
SMM-CUYP-CN are at $117.50 a tonne, just below the recent
three-year high of $120 a tonne, indicating strong demand for
physical metal.    
    * OTHER METALS: Nickel, used to make stainless steel, was
the biggest climber, tracking gains in Chinese steel futures
 to rise 1.7 percent in London and closing up
1.9 percent in Shanghai. 
    Zinc slipped as much as 1.8 percent in Shanghai,
after the ShFE on Friday reported a 23.3 percent jump in stocks,
before closing down 0.2 percent.
    * NICKEL: The bulk of nickel moving out of London Metal
Exchange-approved warehouses in Asia is showing up in hidden
facilities in Europe, analysts said, denting a bullish scenario
of potential shortages.
    * HKEX: A Shenzhen-based commodity exchange controlled by
Hong Kong Exchanges and Clearing unexpectedly began
spot trading on Friday, giving the HKEX much-coveted access to
mainland China's market.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    * Asian shares swung into the black on Monday as the promise
of more stimulus boosted Chinese stocks for a second session and
helped offset geopolitical concerns over Saudi Arabia, Italy and
Brexit.    
        
           
    PRICES
 BASE METALS PRICES                       0709 GMT
 Three month LME copper                     6292.5
 Most active ShFE copper                     50500
 Three month LME aluminium                  2022.5
 Most active ShFE aluminium                  14175
 Three month LME zinc                       2667.5
 Most active ShFE zinc                       22035
 Three month LME lead                         2020
 Most active ShFE lead                       18460
 Three month LME nickel                      12675
 Most active ShFE nickel                    104200
 Three month LME tin                         19190
 Most active ShFE tin                       147350
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3    -332.16
 LME/SHFE ALUMINIUM          LMESHFALc3   -2143.48
 LME/SHFE ZINC               LMESHFZNc3       5.77
 LME/SHFE LEAD               LMESHFPBc3    1226.07
 LME/SHFE NICKEL             LMESHFNIc3    1143.55
    
($1 = 6.9318 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Sherry Jacob-Phillips and
Vyas Mohan)
  
 
 
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