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METALS-Copper prices rebound after solid China factory data

Mai Nguyen

(Adds Shanghai closing prices, stocks data; updates London prices) SINGAPORE, Nov 1 (Reuters) - London copper prices rebounded on Friday after a sharp fall in the previous session, as a private survey showed manufacturing activity in China was better than expected. China's factory activity expanded at the fastest pace in well over two years in October as new export orders rose and plants ramped up production, the Caixin/Markit Manufacturing Purchasing Managers' Index showed. But the results stand in contrast with an official survey published on Thursday, which showed China's factory activity shrank for the sixth straight month in October. The official survey focuses more on heavy industry than Caixin's, and the two surveys cover different places in China, the world's biggest user of copper that is widely used in manufacturing. Three-month copper on the London Metal Exchange (LME) was up 0.7% at $5839 a tonne, as of 0739 GMT, recovering from a 1.9% drop in the previous session, which was the biggest fall in almost three months due to the weak China data on Thursday. It is still heading for a weekly drop. "The market indicates prices are up today due to the Caixin data. However, the impact of the PMI data is limited," said a China-based base metal analyst. Gains in copper prices were capped by uncertainty over whether the United States and China can reach a trade deal. The most-traded copper contract on the Shanghai Futures Exchange fell as much as 1.3%, reflecting overnight losses in London, but later recovered to close down 0.5% at 47,120 yuan ($6,694.89) a tonne, posting a 0.7% weekly dip, its biggest since the week ended Aug. 2.

FUNDAMENTALS

* TRADE: U.S. President Donald Trump said the United States and China would soon announce a new site where he and Chinese President Xi Jinping will sign a "Phase One" trade deal after Chile cancelled a planned summit set for mid-November.

* NICKEL: Nickel miner Independence Group NL said it will stop work on developing a downstream nickel sulphate facility after winning improved terms in two recent off-take agreements for concentrate from its Nova mine.

* AURUBIS: Europe's largest copper producer Aurubis AG remains on the hunt for takeovers with a war chest of about $1 billion, Chief Executive Roland Harings said.

* LME: The LME complex was higher across the board as the dollar softened. Aluminium edged up 0.3%, nickel advanced 0.9%, while zinc and sister metal lead both rose 0.5% and tin inched up 0.03%.

* SHFE STOCKS: Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 4.8% from the previous week to 149,911 tonnes, the exchange said on Friday. PRICES

BASE METALS PRICES 0739 GMTThree month LME copper 5838Most active ShFE copper 47110Three month LME aluminium 1760Most active ShFE aluminium 13875Three month LME zinc 2494.5Most active ShFE zinc 18950Three month LME lead 2168Most active ShFE lead 16570Three month LME nickel 16790Most active ShFE nickel 134560Three month LME tin 16530Most active ShFE tin 137170

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 748.08LME/SHFE ALUMINIUM LMESHFALc3 -157.83LME/SHFE ZINC LMESHFZNc3 -1113.5LME/SHFE LEAD LMESHFPBc3 -1263.63LME/SHFE NICKEL LMESHFNIc3 -5093.08

($1 = 7.0382 Chinese yuan renminbi)

(Reporting by Mai Nguyen; additional reporting by Tom Daly in Beijing; Editing by Rashmi Aich, Aditya Soni and Susan Fenton)