May 28, 2015 / 2:55 AM / in 5 years

METALS-London copper edges off 1-month lows as dollar drops

* China infrastructure spend could boost metals in H2
-analyst
    * China bonded premiums drop for copper, aluminium zinc
    * Coming up: euro zone business climate for May at 0900 GMT

 (Adds detail; updates prices)
    By Melanie Burton
    MELBOURNE, May 28 (Reuters) - London copper edged up on
Thursday from a one-month low hit the session before as the
dollar eased on vague hopes of a Greek debt deal, but prices
were curbed as seasonal demand passes its peak and by plentiful
supply.  
    Demand for metals is typically strongest in the second
quarter, after the Lunar New Year and ahead of the northern
hemisphere summer slowdown, suggesting appetite - and prices -
could wane going into the rest of the year.
    But a string of infrastructure announcements by Beijing,
along with easier polices could yet underpin metals demand into
the second half, said Morgan Stanley analyst Joel Crane in
Melbourne.  
   "Given the high level of announcements, should they translate
into new starts of infrastructure, that will definitely be a
boost for broad metals demand -  aluminium in transport, copper
in power for urbanization and rural upgrades." 
    China's state planning agency on Monday released a list of
more than 1,000 proposed projects totalling 1.97 trillion yuan
($318 billion) that it is inviting private investors to help
fund, build and operate. 
    Three-month copper on the London Metal Exchange had
edged up 0.4 percent to $6,106.50 a tonne by 0757 GMT, after
closing a tad weaker in the previous session, when it touched
its lowest since April 29 at $6,075.50 a tonne.
    The most-traded August copper contract on the Shanghai
Futures Exchange firmed 0.1 percent to 44,250 yuan   
($7,140) a tonne. ShFE copper fell below its 200-day moving
average on Wednesday, a chart signal that suggests consolidation
to come. 
    China's factories struggled to expand in May despite recent
interest rate cuts and other policy stimulus, a Reuters poll
showed, suggesting the government may have to do more to halt a
protracted slowdown in the economy. 
    Across other metals, LME nickel and ShFE nickel
 gained around 1 percent, after hitting one-month lows in
the past week.
    "Nickel was a victim of the mid-month metals sell-off and
looks set to spend time at these lower numbers until we see some
solid, positive macro data to improve sentiment," said broker
Triland in a note.  
    "The best we can say for now is that it is holding its
ground in the face of continued warehouse stock increases."
    Reflecting ample supply across base metals in China,
premiums for copper, aluminium and zinc in bonded warehouse all
fell, the latest data showed. <0#BASEBW-SHMET>
    G7 ministers and central bank heads convened on Wednesday to
discuss how to revive global growth and China's increasing
clout, while keeping a close eye on the protracted talks to
avoid a Greek default. 
    PRICES    
    Three month LME copper          
    Most active ShFE copper         
    Three month LME aluminium       
    Most active ShFE aluminium      
    Three month LME zinc            
    Most active ShFE zinc           
    Three month LME lead            
    Most active ShFE lead           
    Three month LME nickel          
    Most active ShFE nickel          
    Three month LME tin             
    Most active ShFE tin                    
    
($1 = 6.1978 Chinese yuan renminbi)

 (Reporting by Melanie Burton; Editing by Joseph Radford and
Subhranshu Sahu)
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