METALS-Copper claws higher on hopes Chinese stimulus will lift demand
Adds analyst comment, updates prices, changes dateline to LONDON
By Eric Onstad
LONDON, Jan 6 (Reuters) - Copper and aluminium prices rose on Friday on hopes that demand will pick up in China on the back of efforts to boost its troubled property sector and the wider economy.
Gains were capped, however, and some metals were in the red owing to over rising coronavirus cases in top metals consumer China and ahead of closely watched U.S. jobs data.
Three-month copper CMCU3 on the London Metal Exchange (LME) added 0.7% to $8,436 a tonne by 1100 GMT while aluminium CMAL3 was up 0.6% at $2,270.
"There's a fairly widespread view that commodities will rally by the end of the year, but the backdrop of demand being pretty weak at the moment makes things tricky," said Dan Smith, head of research at Amalgamated Metals Trading.
"For the short term we remain bearish because there's a lot of market choppiness we to get through first."
Copper hit its highest in six months in mid-December on a weaker dollar but touched a two-month low on Wednesday amid worries about a potential global recession.
Economists and analysts believe that policymakers in China will take more steps tothis year, as part of Beijing's overall goal to bolster its $17 trillion economy after a sharp COVID-induced downturn.
The most-traded February copper contract on the Shanghai Futures Exchange SCFcv1 rose 1.8% to 65,240 yuan ($9,508.82) a tonne.
Copper also gained support from that Chile, the world's biggest copper producer, registered a 6.9%in November to 449,000 tonnes.
Investors were awaiting U.S. jobs data due at 1330 GMT, which is likely to show the U.S. economy maintained aof job and wage growth in December.
Meanwhile, SHFE SNIcv1 extended losses, slumping by 6.1% to 210,200 yuan for its lowest since Dec. 7.
Traders said the drop was partly attributable to rising supply expectations after China's Tsingshan Group, the world's largest producer, started its project.
LME CMNI3 tumbled by 6.8% on Thursday but rebounded slightly on Friday, adding 0.8% to $27,955.
Among other metals, LME zinc CMZN3 shed 0.7% to $2,984 a tonne and lead CMPB3 lost 1.2% to $2,190.50, but tin CMSN3 added 0.7% at $25,025.
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($1 = 6.8610 Chinese yuan)
(Reporting by Eric Onstad
Additionial reporting by Siyi Liu and Dominique Patton in Beijing
Editing by David Goodman)
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