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METALS-London copper shrugs off firmer dollar as China demand supports

(Adds comment, detail, updates prices) MELBOURNE, Dec 4 (Reuters) - London copper held its ground on Monday, defying a stronger dollar to find support from resilient manufacturing demand in top consumer China, although analysts said downward pressure may mount towards year-end. "There's some more consoldiation in base metals. For copper, there is no clear direction," said analyst Helen Lau of broker Argonaut Securities. Lau said metals demand would come under pressure as construction activity winds down over winter from levels already curbed by Beijing's anti-pollution drive. Profit-taking by long investors could also add to the downside pressure, she said. "All of these usual seasonal factors will continue to affect base metals. It's a healthy consolidation. So maybe we have a fresh start next year."

* COPPER: London Metal Exchange copper edged up by 0.3 percent to $6,855.50 a tonne by 0650 GMT, adding to 1.1 percent gains from the previous session. Prices last week fell percent. This is still its largest rally since 2010.

* SHFE: Shanghai Futures Exchange copper rose by 1.3 percent to 53,510 yuan ($8,091) a tonne.

* CHINA ECONOMY: China's manufacturing activity remained in expansion mode but grew at the weakest pace in five months in November as input costs remained high and tougher pollution measures weighed on business confidence.

* RIO TINTO: Global miner Rio Tinto signalled on Monday it will stick with its "value over volume" strategy, outlining further moves to boost shareholder returns and appointing a new chairman from within its board.

* CHINA: Rio also pointed to a possible slowing in China over the next six months, with a weakening in construction, infrastructure and automotive demand growth, but said it remains optimistic about China in the medium to long term.

* CHINA ALUMINIUM: China's central Shanxi province has introduced new rules curbing water use for steel, cement and aluminium production, state media reported on Sunday, in another blow to sectors reeling from government-enforced output cuts.

* INVESTORS: Hedge funds and money managers raised their net long positions in COMEX gold and copper contracts in the week to Nov. 28, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

* In other metals, LME aluminium,, zincand lead all slipped around half a percent, paring strong advances on Friday. LME Nickel bounced by 1.2 percent.

* MARKETS: The U.S. dollar bounced to a two-week top on Monday as traders celebrated the passage of a Senate tax bill over the weekend, while stronger U.S. stock futures pointed to a merry start for Asian shares.

* COMING UP: U.S. Factory orders Oct at 1500 GMT

PRICES 0543 GMT

Three month LME copper 6857.5 Most active ShFE copper 53530 Three month LME aluminium 2072.5 Most active ShFE aluminium 14580 Three month LME zinc 3237 Most active ShFE zinc 25685 Three month LME lead 2544.5 Most active ShFE lead 19105 Three month LME nickel 11420 Most active ShFE nickel 92430 Three month LME tin 19495 Most active ShFE tin 141710 LME/SHFE COPPER LMESHFCUc3 604.59 LME/SHFE ALUMINIUM LMESHFALc3 -1275.

07

LME/SHFE ZINC LMESHFZNc3 257.57 LME/SHFE LEAD LMESHFPBc3 -1212.

13

LME/SHFE NICKEL LMESHFNIc3 2750.1

5

($1 = 6.6151 Chinese yuan renminbi)

(Reporting by Melanie Burton; editing by Richard Pullin)