METALS-Shanghai copper climbs on China's plan to expand strategic reserves

Feb 4 (Reuters) - Shanghai copper climbed on Wednesday as investors reacted to China's plan to expand its strategic reserves.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 climbed 2.45% to 103,120 yuan ($14,864.57) a metric ton as of 0330 GMT.

The benchmark three-month copper on the London Metal Exchange CMCU3, meanwhile, dipped 1.11% to $13,328.50 a ton.

China will expand its copper strategic reserves, an official at the state-backed China Nonferrous Metals Industry Association said on Tuesday, adding that it will also explore creating a commercial stockpiling system led by state-owned enterprises.

The top copper consumer will also study adding copper concentrate to its reserves, according to the official.

The red metal found support from the reserve expansion plan, with the Shanghai contract climbing as high as 105,810 yuan a ton in overnight trading, the highest since January 30 when copper's correction began, while the London benchmark reached $13,526 on Tuesday.

State-backed research house Antaike however urged investor caution, saying that "the exploration of a commercial stockpiling mechanism and research into the feasibility of copper concentrate reserves remain preliminary ideas under discussion among relevant companies and market participants within the industry." in a WeChat article on Wednesday.

Several traders and analysts also cautioned against over-interpreting the announcement, suggesting it may be about longer-term intention rather than any immediate plan to enter the market. They spoke on condition of anonymity given the sensitivity of stockpiling in China.

Elsewhere, Shanghai tin SSNcv1 concluded a three-day plunge, rising 3.91% to 387,920 yuan a ton, while London tin SSNcv1 dipped 1.60% to $49,320, after reclaiming the $50,000 mark previously.

Nickel also climbed. Shanghai nickel SNIcv1 gained 2.94% to 136,570 yuan a ton, and the London benchmark nickel contract CMNI3 gained 0.39% to $17,515.

Both Goldman Sachs and Macquarie lifted their average 2026 nickel price forecasts to above $17,000 level on Tuesday, citing tightened supply from top producer Indonesia.

Among other SHFE base metals, aluminium SAFcv1 climbed 1.55%, zinc dipped 0.40% and lead SPBcv1 nudged 0.24% lower.

Elsewhere on the LME, aluminium CMAL3 dipped 0.08%, zinc CMZN3 dropped 0.28%, and lead CMPB3 was little changed, ticking 0.05% higher.

Wednesday, February 4

DATA/EVENTS (GMT)

0850 France HCOB Composite, Services PMI Jan

0855 Germany HCOB Services PMI Jan

0855 Germany HCOB Composite Final PMI Jan

0900 EU HCOB Services, COmposite Final PMI Jan

0930 UK S&P Global PMI: Composite - Output Jan

0930 UK Reserve Assets Total Jan

1000 EU HCIP Flash YY Jan

1000 EU HCIP-X F, E, A, T Flash MM, YY Jan

1445 US S&P Global Comp, Svcs PMI Final Jan

1500 US ISM N-MFg PMI Jan

($1 = 6.9373 Chinese yuan renminbi)