Base metals rise on US rate cut hopes; poor China data weighs
Updates prices, adds details
By Mai Nguyen
Aug 15 (Reuters) - Prices of mostnonferrous metals rose on Thursday, helped by the hopesof a U.S.rate cut, while high metals inventories overalland disappointing China data capped gains.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.2%to $8,985 per metric ton by 0530GMT, while the most-traded September copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 0.2% to 72,320 yuan ($10,108.18) a ton.
The dollar was on the back foot after data showed U.S. inflation was slowing, raising hopes that the Federal Reserve could cut rates next month. A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
Market participants are also keeping an eye on a strike at BHP's BHP.AX Escondida mine, which produced nearly 5% of the world's copper last year. Mine supply has been tight and partly contributed to copper prices hitting record highs in May.
However, gains were limited due to high LMEcopper stockpilesMCUSTX-TOTAL, which were at thehighest since September 2019. Most inflows were into South Korea and Taiwan, the closest LME warehouses to China.
"There's a supply of sellers of copper at between $9,000 and $9,050, and this is in the face of the Escondida strike. High Asia copper inventories are spoiling the mood for the metal to rally," said a trader.
In addition, official data on Thursday showed China's factory output growthslowed and missed expectations in July, while data earlier in the week showed bank lending tumbled more than expected in July and hitting the lowest in nearly 15 years.
China accounts for about half of global metals consumption and weak economic data pointed to prospects of poor metals demand. However, the disappointing data also raised hopes of Chinese stimulus.
LME aluminium CMAL3 rose 0.3% to $2,340 a ton, lead CMPB3 increased 0.8% to $2,025.50, while zinc CMZN3 edged down 0.2%at $2,710, tin CMSN3 fell 0.1% to $31,385 and nickel CMNI3 was nearly flatat $16,280.
SHFE aluminium SAFcv1 rose 0.6% to 19,155yuan a ton, nickel SNIcv1 advanced 0.4% to 128,530yuan, zinc SZNcv1 increased 0.1%to 22,805 yuan, lead SPBcv1 climbed 0.4% to 17,490 yuan and tin SSNcv1 dipped 0.1% to255,810yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng and Janane Venkatraman
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