December 4, 2017 / 6:06 AM / in a year

METALS-London copper shrugs off firmer dollar as China demand supports

 (Adds comment, detail, updates prices)
    By Melanie Burton
    MELBOURNE, Dec 4 (Reuters) - London copper held its ground
on Monday, defying a stronger dollar to find support from
resilient manufacturing demand in top consumer China, although
analysts said downward pressure may mount towards year-end.  
    "There's some more consolidation in base metals. For copper,
there is no clear direction," said analyst Helen Lau of broker
Argonaut Securities in Hong Kong.
    Lau said metals demand would come under pressure as
construction activity winds down over winter, with levels
already curbed by Beijing's anti-pollution drive. Profit-taking
by long investors could also add to the downside pressure, she
    "All of these usual seasonal factors will continue to affect
base metals. It's a healthy consolidation. So maybe we have a
fresh start next year."    
    * COPPER: London Metal Exchange copper edged up by
0.3 percent to $6,854 a tonne by 0702 GMT, adding to 1.1 percent
gains from the previous session. Prices last week fell by 2.4
percent, trimming copper's advance for the year to 23 percent.
This is still its largest rally since 2010.
    * SHFE: Shanghai Futures Exchange copper rose by
1.3 percent to 53,550 yuan ($8,095) a tonne.
    * CHINA ECONOMY: China's manufacturing activity remained in
expansion mode but grew at the weakest pace in five months in
November as input costs remained high and tougher pollution
measures weighed on business confidence.
    * RIO TINTO: Global miner Rio Tinto
signalled on Monday it will stick with its "value over volume"
strategy, outlining further moves to boost shareholder returns
and appointing a new chairman from within its board.

    * CHINA: Rio also pointed to a possible slowing in China
over the next six months, with a weakening in construction,
infrastructure and automotive demand growth, but said it remains
optimistic about China in the medium to long term.
    * CHINA ALUMINIUM: China's central Shanxi province has
introduced new rules curbing water use for steel, cement and
aluminium production, state media reported on Sunday, in another
blow to sectors reeling from government-enforced output cuts.
    * INVESTORS: Hedge funds and money managers raised their net
long positions in COMEX gold and copper contracts in the week to
Nov. 28, U.S. Commodity Futures Trading Commission (CFTC) data
showed on Friday.
    * In other metals, LME aluminium,, zincand
lead slipped around half a percent to 1 percent, paring
strong advances on Friday. LME nickel bounced by 1.2
    * MARKETS: The U.S. dollar bounced to a two-week top on
Monday as traders celebrated the passage of a Senate tax bill
over the weekend, while stronger U.S. stock futures pointed to a
merry start for Asian shares.    
    * COMING UP: U.S. Factory orders Oct at 1500 GMT    
                                   0543 GMT        
 Three month LME copper                      6857.5
 Most active ShFE copper                      53530
 Three month LME aluminium                   2072.5
 Most active ShFE aluminium                   14580
 Three month LME zinc                          3237
 Most active ShFE zinc                        25685
 Three month LME lead                        2544.5
 Most active ShFE lead                        19105
 Three month LME nickel                       11420
 Most active ShFE nickel                      92430
 Three month LME tin                          19495
 Most active ShFE tin                        141710
 LME/SHFE COPPER               LMESHFCUc3    604.59
 LME/SHFE ALUMINIUM            LMESHFALc3    -1275.
 LME/SHFE ZINC                 LMESHFZNc3    257.57
 LME/SHFE LEAD                 LMESHFPBc3    -1212.
 LME/SHFE NICKEL               LMESHFNIc3    2750.1
($1 = 6.6151 Chinese yuan renminbi)

($1 = 6.6148 Chinese yuan renminbi)

 (Reporting by Melanie Burton; editing by Richard Pullin)
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