London base metals slip as China stimulus plan lacks details
Oct 14 (Reuters) -Nonferrous metals fell in London on Monday after somewhat underwhelming stimulus from China and weak inflation data weighed on the market.
Three-month copper on the London Metal Exchange (LME) CMCU3 fell 1% to $9,694.5 per metric ton by 0213 GMT. The most-traded November copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 dipped 0.1% to 77,220 yuan ($10,910.17) a ton.
LME nickel CMNI3 lost 1.2% to $17,645, zinc CMZN3 dropped 2% to $3,092, lead CMPB3 decreased 0.7% to $2,081.5 and tin CMSN3 was down 1.1% at $32,840.
At a press conference on Saturday, Chinese Finance Minister Lan Foan pledged to "significantly increase" debt, but left investors guessing on the overall size of the stimulus.
Despite the lack of details, the Chinese central bank's effective support for equity markets could ultimately be beneficial to commodity markets, ANZ said in a note.
China is a major consumer of base metals. The health of the Chinese property sector is key to the market, given that construction is a major user of base metals.
Data showed that China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity.
Copper inventories CU-STX-SGH in warehouses monitored by the SHFE rose 10.5% to 156,485 tons from the last release on Sept. 30, the exchange said on Friday.
SHFE aluminium SAFcv1 was flat at 20,745 yuan a ton, nickel SNIcv1 gained 0.2% to 134,170 yuan, zinc SZNcv1 declined 0.3% to 25,245 yuan, lead SPBcv1 increased 0.4% to 16,710 yuan and tin SSNcv1 fell 0.7% to 265,690 yuan.
LME aluminium CMAL3 fell 1% to $2,606.50 a ton. Prices rose in the previous session on concerns that supply disruptions from Guinea would further tighten the market for alumina, the main ingredient in making aluminium.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu
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