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METALS-London copper hits one-week top on solid China manufacturing

(Adds comment, updates prices) MELBOURNE, April 3 (Reuters) - London copper climbed to the highest level in more than a week on Tuesday, supported by stronger-than-expected manufacturing growth in top metals user China. China's large state-owned manufacturers returned a solid report card for March as authorities lifted winter pollution restrictions and steel mills cranked up output as construction activity swings back into high gear, based on China's official Purchasing Managers' Index released over the weekend.

The picture was not quite as rosy among smaller to mid-size Chinese firms, where manufacturing activity expanded at its weakest pace in four months as export demand faltered.

The London Metal Exchange was closed on Friday and Monday for the Easter holiday. Investor worries over a tit-for-tat trade spat between the United States and China were likely to fade out, INTL FCStone said in a monthly report. "Over the course of April, we think investors will come to the conclusion that the trade issue is going to be a protracted and complicated affair and will likely be "defanged," it said. Metals traded on the London Metal Exchange will likely strengthen in the second quarter when seasonal demand is strongest, the brokerage said. INTL FCStone sees copper trading between $1,960 and $2,100 this month.

FUNDAMENTALS

* London Metal Exchange copper jumped 1.5 percent to $6,814 a tonne at 0517 GMT, having peaked at $6,828, its highest since March 22. Prices clawed back above the 200-day moving average for the quarter ended on Friday, rescuing prices from coming under further technical selling pressure.

* Shanghai Futures Exchange copper rose 0.4 percent to 50,500 yuan ($8,033) a tonne.

* CHINA TARIFFS: China has increased tariffs by up to 25 percent on 128 U.S. products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world's biggest economies in response to U.S. duties on imports of aluminum and steel.

* U.S. ECONOMY: U.S. factory activity slowed in March amid shortages of skilled workers and rising capacity constraints, but growth in the manufacturing sector remains underpinned by strong domestic and global economies.

* COPPER SUPPLY: In a signal of plentiful copper mine supply, China's top copper smelters on Friday lowered their floor treatment and refining charges (TC/RCs) for copper concentrate by 10.3 percent for the second quarter of 2018.

* MORE COPPER: Sumitomo Metal Mining Co Ltd, Japan's second-largest copper smelter, said it planned to increase its refined copper output in the financial year that started on April 1 by 4.6 percent from a year earlier.

* EVEN MORE COPPER: Chile's state copper company, Codelco , produced 1.734 million tonnes of copper in 2017, its second highest output ever, despite persistently low ore grades at its aging mines. PRICES 0445 GMT

Three month LME copper 6817.5 Most active ShFE copper 50500 Three month LME aluminum 2033.5 Most active ShFE aluminum 14100 Three month LME zinc 3288 Most active ShFE zinc 24940 Three month LME lead 2395 Most active ShFE lead 18730 Three month LME nickel 13580 Most active ShFE nickel 100600 Three month LME tin 21290 Most active ShFE tin 145560 LME/SHFE COPPER LMESHFCUc3 624.93 LME/SHFE ALUMINIUM LMESHFALc3 -719.07 LME/SHFE ZINC LMESHFZNc3 358.45 LME/SHFE LEAD LMESHFPBc3 50.11 LME/SHFE NICKEL LMESHFNIc3 -654.81

($1 = 6.2868 Chinese yuan)

(Reporting by Melanie Burton Editing by Manolo Serapio Jr.)