BEIJING, Oct 22 (Reuters) - London copper prices rose for a
second session on Monday, extending a rally fuelled by a pledge
from China's central bank that it would support firms with
liquidity problems. The pledge was followed by comments from Chinese President
Xi Jinping on Sunday that the ruling Communist Party would
always support private-sector firms.
China is "multiplying its efforts to support the economy,
and in particular, the infrastructure sector amid domestic and
international headwinds," such as the trade war with the United
States and high debt levels, Fitch Solutions said in a note.
The country's demand for copper, an economic bellwether,
"will improve over the coming months as property completions and
grid investment picks up and demand from the autos and consumer
sectors remain buoyant," added the research house.
FUNDAMENTALS:
* LME COPPER: Three-month copper on the London Metal
Exchange was up 0.8 percent at $6,270.50 a tonne, as of
0418 GMT, extending a 1 percent jump from the previous session.
* SHFE COPPER: The most-traded December copper contract on
the Shanghai Futures Exchange climbed 1 percent to
50,470 yuan ($7,282.09) a tonne by the mid-session interval.
* COPPER PREMIUMS: China's copper import premiums
SMM-CUYP-CN are at $117.50 a tonne, just below the recent
three-year high of $120 a tonne, indicating strong demand for
physical metal.
* OTHER METALS: Nickel, used to make stainless steel, was
the biggest climber, tracking gains in Chinese steel futures
to rise 1.7 percent in London, and 2.1 percent
in Shanghai.
Zinc slipped as much as 1.8 percent in Shanghai
after the ShFE on Friday reported a 23.3 percent jump in stocks
before trimming losses to 0.5 percent.
* NICKEL: The bulk of nickel moving out of London Metal
Exchange-approved warehouses in Asia is showing up in hidden
facilities in Europe, analysts said, denting a bullish scenario
of potential shortages.
* HKEX: A Shenzhen-based commodity exchange controlled by
Hong Kong Exchanges and Clearing unexpectedly began
spot trading on Friday, giving the HKEX much-coveted access to
mainland China's market.
