April 19, 2017 / 7:35 AM / 3 years ago

METALS-London copper climbs off 3-mth low, but demand worries loom

 (Adds detail, updates prices)
    MELBOURNE, April 19 (Reuters) - London copper climbed away
from its weakest since January as the dollar dropped on
Wednesday, but concerns China's base metals demand could temper
in the coming quarter as Beijing acts on runaway property prices
capped gains. 
    Concerns about how China will slow housing prices, which has
been weighing on bulk commodities, finally spilled over into the
metals sector, said ANZ in a report.
    "Investors now appear to be sceptical about the ongoing
strength in economic growth in China." 
    * LME COPPER: Three-month copper on the London Metal
Exchange rebounded by 1.3 percent to $5,646 a tonne by
0714 GMT, cutting the 2.1 percent-loss of the previous session.
On Tuesday, prices hit their lowest since early January at
$5,568.50 a tonne. 
    * SHFE: Shanghai Futures Exchange copper cut losses
to 1 percent at 45,840 yuan ($6,660) a tonne, after dipping as
low as 45,110 yuan. Steel-linked metals, Shanghai zinc and
nickel have been punished by losses due to mounting China steel
inventories amid record output from mills. Demand for steel,
used early in the construction cycle, is seen as a forward
indicator for demand intensity for other metals. 
    * Shanghai zinc ended at 21,025 yuan, down 2.7
percent but off early lows. ShFE nickel and lead
 fell 2 percent, also tracking a steep slide on the LME.
    * CHINA PROPERTY: Prices in China's sizzling property
market, a major driver of growth in the world's second-largest
economy, accelerated in March on a monthly basis, shaking off
cooling measures introduced to dampen speculative demand.

    * CHINA ECONOMY: A recovery in China's industrial sector,
which accounts for about one-third of the economy, drove China's
better-than-expected first quarter economic growth as export
orders picked up and steel output hit a record.
    * IMF: The International Monetary Fund raised its 2017
global growth forecast on Tuesday due to manufacturing and trade
gains in Europe, Japan and China, but warned that protectionist
policies threaten to choke a broad recovery.
   * U.S. ECONOMY: U.S. homebuilding fell in March after
unseasonably mild weather buoyed activity in February and
manufacturing output dropped for the first time in seven months,
further indications that economic growth braked sharply in the
first quarter. 
    * CHILE DISRUPTION: A supervisor at the Salvador copper mine
owned by Chile's Codelco            died in an accident on
Tuesday, causing the state-owned company to suspend operations
at its concentrator plant there.
    * FREEPORT: Freeport McMoRan Inc has received
preliminary approval to resume copper concentrate exports from
Indonesia and hopes to lodge an application for an export permit
this week, a company spokesman said. 
 BASE METALS PRICES                0705 GMT           
 Three month LME copper                           5647
 Most active ShFE copper                         45840
 Three month LME aluminium                        1907
 Most active ShFE aluminium                      14250
 Three month LME zinc                             2539
 Most active ShFE zinc                           21025
 Three month LME lead                             2134
 Most active ShFE lead                           15915
 Three month LME nickel                           9445
 Most active ShFE nickel                         79200
 Three month LME tin                             19700
 Most active ShFE tin                           140450
 BASE METALS ARBITRAGE                                
 LME/SHFE COPPER                LMESHFCUc3      457.48
 LME/SHFE ALUMINIUM             LMESHFALc3     -996.35
 LME/SHFE ZINC                  LMESHFZNc3       195.1
 LME/SHFE LEAD                  LMESHFPBc3    -1776.82
 LME/SHFE NICKEL                LMESHFNIc3        1494
    ($1 = 6.8778 Chinese yuan)

 (Reporting by Melanie Burton; Editing by Tom Hogue and Biju
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