Most base metals rise on Chinese rate cuts, hopes of more stimulus
Oct 21 (Reuters) -Most nonferrous metals rose on Monday, boosted by rate cuts in top consumer China and expectations of further stimulus to spureconomic growth.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 1% to $9,722 per metric ton by 0319 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 1.3% to 77,650 yuan ($10,934.00) a ton.
Base metals are used in a wide range of sectors, and measures to boost Chinese economic growth could potentially help lift physical metals demand.
China cut benchmark lending rates as anticipated at the monthly fixing on Monday, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.
Data showingslowing economic growth also reinforced the belief that China will release more stimulus measures after the policy released earlier in October and in late September fell short of market expectations.
Despite Monday's gains, copper price in London is still 4.3% below the near four-month peak of $10,158hit on Sept. 30, while the Shanghai price is down 2.3% during the same period.
The copper inventory in SHFE warehouses CU-STX-SGH rose 8% last week to 168,425 tons, the highest since Sept. 13, raising concern about physical demand in the traditionally strong consumption months in China.
LME aluminium CMAl3 rose 1.1% to $2,640.50 a ton, nickel CMNI3 increased 0.7% to $17,010, zinc CMZN3 climbed 1.5% to $3,135.50, lead CMPB3 was 0.6% higher at $2,084, and tin CMSN3 was up 0.4% at $31,425.
SHFE aluminium SAFcv1 increased 1.2% to 20,855 yuan a ton, nickel SNIcv1 edged up 0.4% to 129,430 yuan, zinc SZNcv1 climbed 1.9% to 25,450 yuan, lead SPBcv1 advanced 0.4% to 16,715 yuan while tin SSNcv1 fell 0.2% to 255,960 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng
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