Copper gains on waning US recession fears, China demand
Updates prices
BEIJING, Aug 19 (Reuters) -Copper prices opened the week on a higher note, as fears of a U.S. recession faded following a batch of strong data last week and signs of improving demand in top consumer China.
Three-month copper on the London Metal Exchange CMCU3 gained 1.1% to $9,213 per metric ton by 0729 GMT, after recording its first weekly gain in six last week.
The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 added 0.4% to 73,900 yuan ($10,347.53) a ton.
Last week, reports on retail sales, inflation and producer prices helped allay fears of an economic downturn in the United States sparked by weaker-than-expected employment data at the start of the month.
Minutes of the Federal Reserve's July policy meeting and Chair Jerome Powell's speech at Jackson Hole are likely to be the main drivers of currency movement and investor sentiment this week.
In China, copper users raised purchases as prices dropped, and ahead of traditional strong autumn demand.
Refined copper rod producers ramped up their operations last week at a better-than-expected pace, according to a survey by Shanghai Metals Market (SMM).
Deliverable copper stocks on SHFE, having hovered around a four-year peak, declined in recent weeks to a five-month low on Friday. CU-STX-SGH
The main union at BHP's BHP.AX Escondida copper mine in Chile agreed to management's sweetened wage offer on Friday, leading the union to suspend its strike, easing concerns about global supplies of the metal.
LME aluminium CMAL3 gained 1.2% to $2,393.50 a ton, tin CMSN3 added 1% to $32,210, zinc CMZN3 increased 1.2% to $2,792.50, lead CMPB3 climbed 1% to $2,056.50 and nickel CMNI3 nudged 1.3% higher to $16,580.
SHFE aluminium SAFcv1 rose 1.5% to 19,580 yuan a ton, zinc SZNcv1 was 0.5% higher at 23,345 yuan, lead SPBcv1 dipped 0.1% at 17,660 yuan, tin SSNcv1 gained 0.5% to 263,810 yuan and nickel SNIcv1 added 1.1% to 130,360 yuan.
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Reporting by Siyi Liu and Colleen Howe; Editing by Subhranshu Sahu and Mrigank Dhaniwala
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