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SINGAPORE - London copper prices rose on Monday, as better-than-expected data from top consumer China boosted sentiment, but trading volume was low ahead of a long holiday in China.
Three-month copper on the London Metal Exchange (LME) rose 0.1% to $6,280.50 a tonne by 0456 GMT, hovering around an eight-month high as investors were upbeat about some of China's key economic data released on Friday.
China's industrial output and retail sales in December as well as 2019 fixed-asset investment rose better than expected.
"Downstream retail sectors and manufacturing sectors should be the key drivers for China's 2020 economic growth. With solid demand for homes, China's investment in property sectors and related manufacturing sectors may also support asset investment growth," analyst Helen Lau of Argonaut Securities said.
"Against this development, overall demand for commodities is set to improve," she said in a note.
Shanghai Futures Exchange's (ShFE) most active copper contract, however, eased 0.6% to 49,040 yuan ($7,163.31) a tonne after growing 0.8% last week, as trade slowed leading up to China's week-long Lunar New Year holiday starting Jan. 24.
FUNDAMENTALS
CHINA SCRAP: China's market regulator published new standards for high-grade copper scrap and aluminium scrap metal on Sunday, shedding some light on what material will be allowed into the country from the second half of this year.
ZINC: Historically low stocks of zinc in London Metal Exchange registered warehouses are likely to fuel price volatility and confound those investors looking at an oversupplied market and expecting significantly lower prices.
OTHER PRICES: LME aluminium edged up 0.1% to $1,806 a tonne, zinc rose 0.1% to $2,431.50 a tonne, lead advanced 1% to $1,996.50 a tonne, while nickel fell 0.1% to $13,895 a tonne.
SHANGHAI PRICES: ShFE aluminium fell 0.1% to 14,270 a tonne, nickel dropped 1.2% to 108,320 a tonne while zinc edged up 0.2% to 18,415 yuan a tonne, while lead rose 1.4% to 15,475 yuan a tonne.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 6.8460 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Shailesh Kuber)
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