METALS-Copper steadies after upbeat China data; nickel set for best month in 2 years

LONDON, April 30 (Reuters) - Copper steadied on Thursday after five straight daily falls as upbeat factory data in top consumer China offset concerns over the impact of the war in the Middle East, while nickel headed for its biggest monthly jump in two years.

Benchmark three-month copper CMCU3 on the London Metal Exchange was flat at $12,999 a metric ton as of 1600 GMT.

The metal used in power, construction and manufacturing was on course for a 5.3% rise in April on hopes the conflict will be contained, even as Iran said on Thursday it would respond with "long and painful strikes" if the United States renewed attacks, and reasserted its control over the Strait of Hormuz.

China's manufacturing sector expanded in April at its fastest pace since 2020, a private survey showed, while Shanghai Futures Exchange copper stocks CU-STX-SGH continue to be drawn down, falling 4.6% from last week to 192,025 tons.

The SHFE is closed from Friday for the Labour Day holiday and will not reopen until May 6.

Refined copper demand in China is forecast to grow by 2.8% this year, driven by ongoing grid investment and tighter scrap availability, CRU analyst Craig Lang said on a webinar.

With global exchange stocks at their highest since the early 2000s, recent high copper prices have been driven by fund investment, Lang said. "Our view on copper prices is that prices will decline towards $11,000 by year-end, before recovering over the medium term," he said.

Additional price support is coming from supply-side risks to raw materials such as sulphur, ING said in a note.

Nickel CMNI3 was up 0.5% at $19,370 a ton and on course to gain 13.8% this month for its biggest monthly rise since April 2024 on tighter mine production quotas in Indonesia, where smelters are also feeling the sulphur squeeze.

"Levels approaching $20,000/t increase the likelihood of additional supply being approved or reactivated," Sucden Financial said.

Aluminium CMAL3 fell 0.4% to $3,475, zinc CMZN3 added 1.2% to $3,355, lead CMPB3 gained 0.3% to $1,955.50 and tin CMSN3 inched up 0.1% to $48,815.