Metals

METALS-Copper rises on China demand optimism, U.S. economic data

Aug 26 (Reuters)Copper prices rose on Friday as hopes grew that fresh stimulus measures in top metals consumer China would boost demand, while better-than-expected economic data from the United States and Europe also supported the market.

Three-month copper on the London Metal Exchange CMCU3 was up 0.5% at $8,172 a tonne, as of 0150 GMT. It has gained 1% so far this week.

The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 climbed 1.3% to 63,450 yuan ($9,259.66) a tonne.

China will add 19 new policies on top of the existing steps unveiled in May, including raising the quota on policy financing tools by 300 billion yuan ($43.69 billion), to support its COVID-hit economy.

The U.S. economy contracted at a more moderate pace than initially thought in the second quarter as consumer spending blunted some of the drag from a sharp slowdown in inventory accumulation, dispelling fears that a recession was underway.

The German economy grew in the second quarter, propped up by household and government spending and beating analyst expectations that saw it on the edge of a downturn, data showed on Thursday.

Peru, the world’s No. 2 copper producer, expects the price of the metal to fall to $3.40 per pound in 2023 from an average of $3.90 this year, according to forecasts from the economy ministry released on Thursday.

The dollar held firm ahead of a keenly awaited speech from U.S. Federal Reserve Chair Jerome Powell, which traders hope could offer clues about the central bank’s rate-hike plans. USD/

LME aluminium CMAL3 was up 0.1% at $2,435 a tonne, zinc CMZN3 added 0.5% to $3,566, lead CMPB3 eased 0.2% to $1,971.5.

Shanghai aluminium SAFcv1 fell 0.7%, zinc SZNcv1 rose 0.9%, nickel SNIcv1 gained 1.8%, lead SPBcv1 was down 0.7%, and tin SSNcv1 added 0.2%.

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TOP/MTL or MET/L

DATA/EVENTS (GMT)

1230 US Consumption, Adjusted MM July

1400 US U Mich Sentiment Final Aug

1400 US Federal Reserve Chair Jerome Powell speaks on the economic outlook before the 2022 Jackson Hole Economic Symposium

($1 = 6.8523 Chinese yuan)

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

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