METALS-Shanghai copper gains as prospects of US rate cut lift sentiment

BEIJING, Aug 13 (Reuters) - Shanghai copper prices ticked up on Wednesday as U.S. inflation data backed expectations for a Federal Reserve interest rate cut next month, although higher stocks kept gains in check.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.43% to 79,280 yuan ($11,037.79) per metric ton by 0146 GMT.

The contract hit its highest level since July 25 at 79,510 yuan a ton earlier in the session.

Prospects of easing U.S. monetary policy boosted sentiment across the sector, ANZ analysts said in a note.

The consumer price index (CPI) rose 0.2% last month after gaining 0.3% in June, data showed on Tuesday. Economists polled by Reuters had forecast the CPI rising 0.2%.

Copper prices were also supported by news that China is planning to offer interest subsidies for businesses in eight consumer service sectors to boost consumption.

Gains were, however, capped by higher LME and SHFE copper stocks, said Matt Huang, an analyst at broker Bands Financial.

Stocks in London Metal Exchange-approved warehouses MCUSTX-TOTAL have climbed by 11% so far in August, while SHFE copper warehouses stocks CU-STX-SGH are up nearly 13%.

The rise came after U.S. President Donald Trump excluded refined copper from the 50% import tariff effective August 1, ending a wave of front-loading cargoes to the United States to cash in on bumper premium.

"In the near term, the risk of a supply surplus is looming amid rising stocks. Also, we have not heard many Chinese smelters cutting output yet," Bands Financial's Matt said.

Benchmark three-month LME copper CMCU3 dipped 0.15% to $9,825.5 a ton after touching a more than two-week high on Tuesday boosted by a 90-day extension to a Sino-U.S. trade truce.

SHFE aluminium SAFcv1 climbed 0.68%, nickel SNIcv1 advanced 0.52%, tin SSNcv1 ticked up 0.45%, and zinc SZNcv1 edged up 0.24%, while lead SPBcv1 was little changed.

LME aluminium CMAL3 rose 0.15%, lead CMPB3 shed 0.1%, tin CMSN3 lost 0.18%, zinc CMZN3 slipped 0.12%, while nickel CMNI3 was flat.

($1 = 7.1826 Chinese yuan)