METALS-Copper rises after seven-session slide as oil pullback eases slowdown concerns

CANBERRA, May 1 (Reuters) - Copper prices climbed on Friday for the first time in seven sessions as oil prices retreated from four-year highs, easing the risk that high energy prices could curb global economic growth.

Also supporting copper were data earlier this week showing that manufacturing activity in top metals consumer China expanded in April at its fastest pace since the end of 2020.

Benchmark three-month copper on the London Metal Exchange CMCU3 was up 0.9% at $13,102 a metric ton, as of 0104 GMT, but still on track to end the week down roughly 1.6%.

Trading activity was muted, with the Shanghai Futures Exchange closed until Wednesday for the Labour Day holiday.

Copper remained close to record highs due to a flow of speculative cash into metals and mining and fears that production will be cut by a shortage of sulphuric acid due to the closure of the Strait of Hormuz.

The Middle East conflict, however, threatens to reduce demand for metals by damaging the world economy.

Brent crude shot above $126 a barrel on Thursday before dropping to around $111 by Friday morning, while Iran threatened "long and painful strikes" on U.S. positions if Washington renewed attacks on it. LCOC1 O/R

Copper inventories in Shanghai Futures Exchange warehouses have more than halved from a peak in March, supporting prices, but this is in line with seasonal trends and inventories elsewhere are high. CU-STX-SGH

LME copper stocks have more than doubled since early January and inventories in Comex warehouses increased around 25-fold over the last year. MCUSTX-TOTAL, HG-STX-COMEX

Last month, the International Copper Study Group forecast the market to be in surplus this year.

Glencore GLEN.L on Thursday reported a 19% surge in its first‑quarter copper production, while Chile's statistics agency said national copper output in March fell 9% year-on-year.

LME three-month aluminium CMAL3 was up 0.9% at $3,503.50 a ton, zinc CMZN3 climbed nearly 1% to $3,392 a ton, nickel CMNI3 rose 0.3% to $19,525 a ton, lead CMPB3 edged 0.1% higher to $1,957.50 and tin CMSN3 fell 0.4% to $49,005 a ton.

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