×

METALS-London copper climbs on robust demand; China leadership meet in focus

MELBOURNE, Oct 18 (Reuters) - London copper climbed on Wednesday, supported by demand growth expectations and relief from a stronger dollar, while markets looked ahead to policy announcements from China's Communist Party conference.

FUNDAMENTALS

* London Metal Exchange copper climbed by 0.6 percent to $7,068 a tonne by 0204 GMT, after giving up 1.5 percent in the previous session.

* Shanghai Futures Exchange copper slipped by 0.7 percent to 55,030 yuan ($8,328) a tonne.

* CHINA MEET: Chinese President Xi Jinping on Wednesday opens a critical Communist Party congress expected to cement his authority with a closely watched address signalling how he intends to put that power to use during a second five-year term.

* U.S. DEMAND: U.S. industrial production rebounded modestly in September as the lingering effects of Hurricanes Harvey and Irma hobbled activity at factories, but the outlook for the industrial sector remains bullish amid a strengthening global economy and weakening dollar.

* NICKEL: The global market for nickel swung into a wider deficit of 6,700 tonnes in August from the month before, data from the International Nickel Study Institute showed on Wednesday.

* CHINA ALUMINIUM: The Chinese government's campaign to reduce smog pollution and whittle down excess production is set to take around a tenth of its aluminium smelting capacity out of the market by the year-end, potentially adding fuel to a months-long price rally.

* ZINC, LEAD: In Shanghai, zinc and lead fell by 2.5 and 3.4 percent, respectively, tracking losses in Shfe rebar which fell 1 percent. Zinc stocks jumped by 16,250 tonnes after a large delivery order for tonnage from Anterp was cancelled. <0#MZNSTX-LOC-GRD>

* METALS DEMAND: Flush order books and solid output figures boosted morale among German investors in October, the ZEW research institute said on Tuesday, suggesting a strong phase of growth in Europe's biggest economy has further to run.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares consolidated recent gains and currencies kept to tight ranges on Wednesday.

DATA/EVENTS

BASE METALS PRICES 0157 GMT Three month LME copper 7067 Most active ShFE copper 55030 Three month LME aluminium 2142 Most active ShFE aluminium 16235 Three month LME zinc 3093 Most active ShFE zinc 25210 Three month LME lead 2501 Most active ShFE lead 19645 Three month LME nickel 11795 Most active ShFE nickel 94270 Three month LME tin 20470 Most active ShFE tin 146190

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 493.21 LME/SHFE ALUMINIUM LMESHFALc3 -210.14 LME/SHFE ZINC LMESHFZNc3 743.08 LME/SHFE LEAD LMESHFPBc3 -444.91 LME/SHFE NICKEL LMESHFNIc3 1816.76

($1 = 6.6078 Chinese yuan)

(Reporting by Melanie Burton; Editing by Amrutha Gayathri)