August 14, 2017 / 3:32 AM / 3 years ago

METALS-London metals mixed after disappointing China factory report

 (Adds comment, detail, updates prices)
    By Melanie Burton
    MELBOURNE, Aug 14 (Reuters) - London copper was little
changed on Monday, holding below recent two-year peaks as
analysts flagged prospects of a correction given strong price
gains over the past month and disappointing factory activity
from China.
    China's factory output grew 6.4 percent in July from a year
earlier, while fixed-asset investment expanded 8.3 percent in
the first seven months, both below economists' forecasts.

     "The metals sector remains even more vulnerable than other
sectors (to a correction) due to the strong rally it has enjoyed
over the past month," said ANZ in a report.
    
    FUNDAMENTALS
    * LME COPPER: London Metal Exchange copper pared
early gains to trade at $6,405 a tonne by 0715 GMT, down 0.1
percent after closing slightly softer on Friday. Prices hit the
highest in more than 2-1/2 years on Aug. 9 at $6,515 a tonne and
are up by almost 8 percent so far this quarter.
    * SHFE COPPER: Shanghai Futures Exchange copper
ended down 0.2 percent. LME zinc and LME lead
both traded up around 0.8 percent, while LME aluminium
LME nickel and LME tin were a shade weaker.
    * CHINA ALUMINIUM: China's aluminium output fell 8.2 percent
in July from a record high a month earlier, data showed on
Monday, as capacity cuts that have sent prices to multi-year
highs start to take their toll on the country's output.

    * Shfe aluminium and nickel fell nearly 2
percent, following last week's strong gains. 
    * STOCKS: Reflecting ample available supply, Shanghai
aluminium and copper inventories surged, weekly inventory data
on Friday showed.
    * ALUMINIUM: Shfe aluminium stocks AL-STX-SGH which have
been climbing all year, hit the highest since May 2013, at
473,000 tonnes, as traders stockpile metal in warehouses in case
of winter cuts, encouraged by financeable spreads. 
    * NICKEL: Nearby nickel CMNIT-0 spreads blew out to $4.90
for tomorrow against next day delivery, while aluminium cash to
three month spreads CMAL0-3 have also sharply narrowed,
suggesting shorts are likely to deliver against their positions
where possible as the prime traded contract expires this week. 
    * ZAMBIA: Copperbelt Energy Corp (CEC), Zambia's
main supplier of power for its mines, confirmed on Sunday that
it has restricted the amount of electricity it supplies to
Glencore unit Mopani Copper Mines (MCM) because of a
dispute over tariffs.
    * SPECULATORS: Hedge funds and money managers lifted their
net long position in copper futures and options further to a
fresh record,  U.S. Commodity Futures Trading Commission data
showed on Friday.
     * COMING UP: Euro zone industrial production for June at
0900 GMT     
     * For the top stories in metals and other news, click      
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    PRICES    
    
 BASE METALS PRICES                   0715 GMT           
 Three month LME copper                              6404
 Most active ShFE copper                            50050
 Three month LME aluminium                         2029.5
 Most active ShFE aluminium                         15775
 Three month LME zinc                              2912.5
 Most active ShFE zinc                              24065
 Three month LME lead                                2343
 Most active ShFE lead                              19035
 Three month LME nickel                             10600
 Most active ShFE nickel                            86180
 Three month LME tin                                20235
 Most active ShFE tin                              144200
                                                         
 BASE METALS ARBITRAGE                                   
 LME/SHFE COPPER                LMESHFCUc3         380.52
 LME/SHFE ALUMINIUM             LMESHFALc3          83.44
 LME/SHFE ZINC                  LMESHFZNc3          879.2
 LME/SHFE LEAD                  LMESHFPBc3         183.87
 LME/SHFE NICKEL                LMESHFNIc3        1954.54
 
    
 (Reporting by Melanie Burton; Editing by Richard Pullin and
Biju Dwarakanath)
  
 
 
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