October 2, 2015 / 3:21 AM / in 5 years

METALS-Copper poised for weekly gain; China demand concerns remain

* Manufacturing data from China, U.S. piles pressure on copper

* Production cuts offer some support for prices

* Copper up about 1 pct for the week

* Coming up: U.S. non-farm payrolls at 1230 GMT (Updates prices)

By A. Ananthalakshmi

SINGAPORE, Oct 2 (Reuters) - Copper was set to snap a two-week decline on Friday as investors bet production cuts would support prices, though concerns over demand from top consumer China remained.

Three-month copper on the London Metal Exchange had edged up 0.4 percent to $5,117 a tonne by 0733 GMT.

The metal had climbed to $5,230 in the previous session, the highest since Sept. 22, but could not hold that ground.

“Copper failed to sustain this week’s rally after weak manufacturing data raised concerns about global growth,” ANZ analysts said in a note.

Data on Thursday showed activity in China’s vast factory sector shrank again in September as demand softened at home and abroad, fuelling fears that the world’s second-largest economy may be cooling more rapidly than expected just a few months ago.

Data from the United States also showed a slowdown in factory growth. The Institute for Supply Management (ISM) said its index of national factory activity fell to 50.2, the lowest since May 2013.

Traders are now waiting for the U.S. nonfarm payrolls report later in the session to help gauge the timing of a Federal Reserve rate hike.

The absence of China, which is closed for a national holiday, also kept liquidity light in Asian hours.

For the week, copper is up 1.8 percent, after posting two straight weeks of declines. Copper prices plunged to six-year lows below $5,000 a tonne in August.

The lower metal prices have prompted several companies to cut mine output.

Chile’s second-biggest copper mine Collahuasi, owned by London-listed Anglo American Plc and Glencore, said this week it planned to cut output by 30,000 tonnes.

That is not a large amount in a market estimated at around 23 million tonnes this year, but it adds to recent announcements about output cuts and reinforces expectations of miners taking out more capacity.

Among other metals, three-month zinc fell 0.2 percent $1,684 a tonne, while aluminium ticked up 0.2 percent to $1,568.50.


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 (Additional reporting by Naveen Thukral; Editing by Joseph Radford and Anupama Dwivedi)

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