METALS-Copper rises on upbeat US data, China demand hopes

By Hongmei Li

SINGAPORE, July 18 (Reuters) - Copper prices on the London Metal Exchange and the Shanghai Futures Exchange rose on Friday, supported by stronger-than-expected U.S. economic data and expectations of increased Chinese buying after the recent price dip.

Three-month copper on the LME CMCU3 gained 0.13% to $9,679 per metric ton by 0104 GMT, rising 0.32% so far this week, and the most-traded copper contract on the SHFE SCFcv1 added 0.5% to 78,290 yuan a ton, but was still 0.19% lower this week.

"The U.S. economic data has been encouraging, boosting the hope for better copper demand and lowering the chances for immediate interest rate cuts," a Beijing-based metals analyst at a futures company said.

U.S. retail sales increased 0.6% in June after an unrevised 0.9% drop in May, while the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July.

"LME copper stocks have been rising, mainly at its Asia warehouses as some traders may be betting on more buying by China with recent price drops, uncertain whether this will materialise and by how much," a Shanghai-based metals analyst at a futures company said.

Total copper stocks at the LME-registered warehouses MCUSTX-TOTAL rose 34.8% since the end of June to 122,150 tons as of Thursday, with the spikes mainly at Asian warehouses such as in Gwangyang and Taiwan.

Meanwhile, the market is waiting for confirmation of the August 1 deadline and details of the U.S.'s 50% import tariffs on copper.

LME tin CMSN3 gained 0.47% to $33,170 a ton, aluminium CMAL3 rose 0.41% at $2,588.5, lead CNPB3 added 0.28% to $1,978.5 and zinc CMZN3 advanced 0.24% to $2,743.5. Nickel CMNI3 eased 0.04% to $15,090.

SHFE zinc SZNcv1 jumped 1.18% to 22,340 yuan a ton, tin SSNcv1 gained 0.77% to 263,760 yuan, nickel SNIcv1 rose 0.67% to 120,430 yuan and aluminium SAFcv1 grew 0.47% to 20,520 yuan. Lead SPBcv1 fell 0.3% to 16,820 yuan.

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DATA/EVENTS (GMT)
1230 US Housing Starts Number June

1400 US U Mich Sentiment Prelim July

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