November 4, 2015 / 1:41 AM / in 5 years

METALS-London copper bounces from 1-month low, tighter supply supports

* China bonded aluminium prices fall $10 to lowest since August

* Coming Up: U.S. ISM non-manufacturing PMI at 1500 GMT (Updates prices)

By Melanie Burton

MELBOURNE, Nov 4 (Reuters) - London copper rose 1 percent on Wednesday, rebounding from a one-month low, supported by falling stockpiles and bets that China’s efforts to stimulate its economy will fuel an improvement in demand.

Signs are emerging that China’s monetary easing measures are feeding a recovery in the economy that could spur a pickup in consumption in the world’s top user of copper.

“The measures taken so far have provided a good backstop to demand,” said strategist Daniel Hynes of ANZ in Sydney.

“We’re seeing housing prices pick up and some stabilization in PMIs (Purchasing Managers Index) as well. But we’re still cautious as to whether that will flow through to a bump in manufacturing and industrial activity towards yearend, which is tempering our medium-term bullish view.”

Growth in Chinese new home prices quickened in October from a year ago, two private surveys showed, adding to signs of stabilisation in the housing market after a raft of government support measures.

China can maintain annual economic growth of around 7 percent over the next five years but there are uncertainties, including weak global trade and high domestic debt, Xinhua news agency quoted President Xi Jinping as saying on Tuesday.

Three-month copper on the London Metal Exchange climbed 1 percent to $5,174.50 a tonne by 0739 GMT.

The price hit the weakest in a month at $5,086.50 a tonne on Monday, but has held above a six-year low of $4,855 reached in late August.

Shanghai Futures Exchange copper closed 0.8 percent higher at 38,900 yuan ($6,140) a tonne.

Underpinning prices, LME copper stocks fell by 1,625 tonnes to 266,225 tonnes, down by nearly 30 percent since late August to the least since February, latest data showed. MCUSTX-TOTAL

In other news, U.S. aluminium premiums have jumped to their highest in three months after Alcoa announced plans to idle the bulk of its U.S. smelting capacity, stirring speculation among traders that the market may have turned a corner.

Reflecting oversupply in China’s domestic market, Shanghai aluminium premiums have dropped $10 to $115, latest data shows, the lowest since early August, and matching the lowest since early 2012.

ShFE aluminium prices appear to be finding a bottom, however, holding above the 10,000 yuan per tonne level for the past five sessions.


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 = 6.3350 Chinese yuan Additional reporting by Manolo Serapio Jr.; Editing by Richard Pullin and Gopakumar Warrier

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