METALS-London copper rises on US rate-cut bets; softer demand in China weighs

By Lucas Liew

Sept 8 (Reuters) - Copper prices in London inched up on Monday, buoyed by growing expectations of a Federal Reserve interest rate cut after disappointing labour data strengthened the case for monetary easing, but softer demand in top consumer China capped gains.

Three-month copper on the London Metal Exchange CMCU3 edged up 0.1% to $9,907.5 per metric ton by 0226 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.25% to 79,740 yuan ($11,176.52) a ton.

Japan's largest copper smelter JX Advanced Metals 5016.T intends to cut copper production by tens of thousands of metric tons in fiscal 2025 from earlier plans and unveil a roadmap to scale down smelting capacity by March to support prices.

Broadly, the dollar index =USD, which measures the U.S. currency against six major peers, steadied at 97.87, after sliding more than 0.5% on Friday. USD/

Dismal U.S. labour data sealed the case for a Fed rate cut this month, with job growth weakening sharply in August and unemployment rate rising to a near 4-year high at 4.3%.

Lower interest rates improve prospects for growth-dependent metals.

Still, rising copper prices have dampened domestic downstream demand and end-user consumption, weakening companies' willingness to restock, said Chinese broker Guotai Junan Futures.

Preliminary Chinese trade data for August showed imports of unwrought copper stood at 425,000 metric tons in August, down 11.5% from a month ago.

Copper inventories in LME-registered warehouses MCUSTX-TOTAL were broadly stable at 157,950 tons, having risen 74% since late June.

U.S. President Donald Trump signed an executive order offering some tariff exemptions to trading partners who strike deals on industrial exports such as nickel and other metals.

Among other London metals, aluminium CMAL3 rose 0.19% to $2,605.5 a ton, nickel CMNI3 gained 0.2% to $15,265, lead CMPB3 edged up 0.08% to $1,986.5, and zinc CMZN3 increased 0.44% to $2,873.5, while tin CMSN3 eased 0.04% to $34,300.

SHFE aluminium SAFcv1 rose 0.07% to 20,685 yuan, nickel SNIcv1 gained 0.33% to 121,500 yuan, lead SPBcv1 edged up 0.06% to 16,890 yuan, and zinc SZNcv1 increased 0.43% to 22,210 yuan, while tin SSNcv1 eased 1.1% to 269,250 yuan.

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DATA/EVENTS (GMT)
No data/events expected for Monday, September 8

($1 = 7.1346 yuan)

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