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

By Hongmei Li

SINGAPORE, July 18 (Reuters) - Copper prices rose on Friday, supported by stronger-than-expected U.S. economic data and expectations of increased buying from top consumer China after the recent price dip.

Three-month copper on the London Metal Exchange CMCU3 gained 0.36% to $9,701.5 per metric ton by 0700 GMT, rising 0.49% so far this week.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 added 0.65% to 78,410 yuan ($10,922.74) a ton, but was still 0.28% 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.

The focus is also on looming U.S. tariffs as the August 1 deadline nears and on details of the 50% import levies on copper.

LME tin CMSN3 gained 0.68% to $33,240 a ton, zinc CMZN3 advanced 0.42% to $2,748.5, lead CNPB3 added 0.2% to $1,977, aluminium CMAL3 rose 0.19% at $2,583, and nickel CMNI3 up 0.09% to $15,110.

SHFE tin SSNcv1 gained the most by 1.07% to 264,540 yuan a ton, zinc SZNcv1 jumped 1% to 22,300 yuan, nickel SNIcv1 rose 0.73% to 120,500 yuan, and aluminium SAFcv1 grew 0.42% to 20,510 yuan. Lead SPBcv1 fell 0.3% to 16,820 yuan.

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