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METALS-London copper set for 3rd monthly gain as China revs up demand hopes
August 31, 2017 / 5:22 AM / 2 months ago

METALS-London copper set for 3rd monthly gain as China revs up demand hopes

(Adds comment, detail, updates prices)

By Melanie Burton

MELBOURNE, Aug 31 (Reuters) - London copper led industrial metals higher in Asia on Thursday, setting the scene for a third monthly gain in a row after healthy growth at China’s factories in August fed expectations of stronger metals demand.

Growth in China’s manufacturing sector unexpectedly accelerated in August, suggesting the world’s second-largest economy is still expanding at a healthy clip despite rising financing costs and a cooling housing market.

“Overall, our reading of PMI is that China’s underlying economy development is resilient. Supply side reform and government policy supports to private enterprises are having a positive impact on overall economy,” said broker Argonaut Securities of Hong Kong in a report.

“We think this positive development in China’s economy is a tailwind for commodity demand, which should not be underestimated any more.”

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange rose 0.6 percent to $6,808.50 a tonne by 0505 GMT, reversing small losses from the previous session. Copper earlier this week struck its highest since Sept 2014 at $6,843.50 and was set to log gains of near 7 percent for August, a third monthly advance.

* SHFE COPPER: Shanghai Futures Exchange copper reversed early losses to trade up 0.2 percent at 52,840 yuan ($8,009) a tonne.

* CHINA WEALTH: As regulatory crackdowns in China hit risky investment products and capital outflows, the country’s private banks are looking to profit as they target a bigger share of growing wealth in the world’s second-largest economy.

* U.S. ECONOMY: The U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years, and there are signs that the momentum was sustained at the start of the third quarter.

* GLENCORE COPPER: Zambian electricity utility Copperbelt Energy Corporation (CEC) and Glencore’s Mopani Copper Mines have reached an agreement to restore full power supply to the mine from Wednesday, the president’s office said on Wednesday.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Investors rediscovered a taste for the dollar and Asian shares on Thursday as upbeat Chinese and U.S. economic news whetted appetite for riskier assets globally, even as tensions over North Korea simmered in the background.

PRICES

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

ARBS ($1 = 6.5977 Chinese yuan renminbi) ($1 = 6.5972 Chinese yuan renminbi)

Reporting by Melanie Burton; Editing by Kenneth Maxwell and Richard Pullin

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