June 9, 2010 / 4:06 AM / 10 years ago

METALS-Copper strengthens on news of robust China exports

 * LME copper up 1.1 pct, poised for further rise
 * Shanghai zinc hits upside limit, other metals higher
 * China May exports soar 50 pct yr/yr-sources
 * Coming Up: ECB's Trichet speaks in Frankfurt, 0900 GMT
 (Recasts to add China data, updates prices)
 By Manolo Serapio Jr.
 MANILA, June 9 (Reuters) - Copper futures jumped on
Wednesday after Reuters reported that China's total exports
surged in May, showing the economic strength of the world's top
consumer of the metal.
 Chinese exports grew about 50 percent in May from a year
earlier, sources said ahead of the release of official data on
Thursday, much bigger than market expectations and fueling a
nearly 3 percent rise in Chinese stocks .SSEC.
 The numbers breathed new life into equity and commodity
markets that have been pummelled by worries over a spreading
debt crisis in Europe.
 For a graphic on the reaction of Shanghai equities and
copper on the China export news, double-click:
 Three-month copper on the London Metal Exchange CMCU3
rose $70.25 to $6,235.25 a tonne at 0705 GMT, extending a $65
rise from Tuesday which was its first gain in seven sessions.
 LME copper may prolong its rebound to touch $6,318 per
tonne after breaching $6,210, Reuters market analyst Wang Tao
said. [TECH/C-MET]
 In Shanghai, benchmark third month copper SCFc3 jumped
990 yuan to close at 50,420 yuan a tonne, ending a three-day
losing streak.
 Shanghai zinc SZNc3 soared by its 5 percent upside limit
to 14,160 yuan a tonne, while aluminium SAFc3 rose 365 yuan
to 14,540 yuan.
 Market players await a speech later in the day by European
Central Bank chief Jean-Claude Trichet ahead of an ECB meeting
on Thursday, where the bank could announce plans to offer extra
funds to banks to ease strains from the euro zone's debt
crisis. [ID:nLDE6560K2]
 "A lot of people are still pretty worried about the
situation in Europe, whether it's going to be an even bigger
problem than it is now," said Judy Zhu, commodity analyst at
Standard Chartered Bank in Shanghai.
 LME copper has lost more than 22 percent since hitting this
year's high above $8,000 in April, pounded by Europe's credit
crisis and fears of slower demand from China.
 "Markets are still lacking any monumental news that could
turn the bearish mindset around," said MF Global analyst Edward
 "More importantly, investors clearly seem to be concluding
that slowing growth will now follow the asset price implosion
we have seen hit the equity and commodity markets.
 Base metals prices at 0705 GMT
 Metal         Last       Change   Pct Move  End 2009 YTD pct
 LME Cu        6235.25     70.25     +1.14    7375.00   
 SHFE Cu*     50420.00    990.00     +2.00   59900.00   
 LME Alum      1939.00     19.00     +0.99    2230.00   
 SHFE Alum*   14540.00    365.00     +2.57   17160.00   
 COMEX Cu**     280.70      3.45     +1.24     332.75   
 LME Zinc      1731.50     -2.50     -0.14    2560.00   
 LME Nickel   18610.00    140.00     +0.76   18525.00     
 LME Lead      1636.00     26.00     +1.61    2432.00   
 LME Tin      16025.00     95.00     +0.60   16950.00    
 LME/Shanghai arb^          -605
 Dollar/yuan          6.8284 \ 6.8289
 ** 1st contract month for COMEX copper
  * 3rd contact month for SHFE aluminium, copper and zinc
  ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
  (Reporting by Manolo Serapio Jr.; Editing by Michael

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