METALS-Copper firms on China's power initiatives in Africa

(Updates prices) By Julian Luk Sept 5 (Reuters) - Copper prices firmed up on Thursday after China announced major investments in building power networks in Africa, but upside in the metal was limited by technical weakness. The most traded three-month copper contract CMCU3 on the London Metal Exchange was up 1.5% at $9,092.5 a metric ton at 1606 GMT, bucking the declines across most of the rest of the metals. China on Thursday pledged nearly $51 billion in funding for Africa, with a focus on improving power networks whose shortcomings have delayed industrialisation in the resource-rich continent. Copper's high conductivity means that is widely used in electricity transmission for wind and solar plants. However, copper prices still remained below the 100 and 50-day moving averages, signalling technical softness, one trader said, adding that copper's resilience is likely to be short-lived and prices will soon dip below $9,000. "Every other metal has reverted back to previous levels after rallies in May," the trader added. Continued weakness in China's property and construction sectors remain the main downside risk for industrial metals, said ING commodities strategist Ewa Manthey. Zinc CMZN3 , mainly used to protect steel from corrosion in construction, fell 2.2% to $2,734 a ton after Russian zinc miner Ozernoye started production earlier than expected after a fire destroyed its facilities. "Nobody expected it to come back this year," a major zinc buyer said. Among other metals, aluminium CMAL3 was down 0.7% at $2,381 a ton, nickel CMNI3 dropped 1% to $16,060, lead CMPB3 slipped 1.4% to $1,992 a ton and tin CMSN3 rose 0.4% to $30,615. China's release of August trade, inflation and credit data in the coming week is expected to shed more light on metals demand prospects for the remainder of the year. (Reporting by Julian Luk in London Editing by Jan Harvey, David Goodman and David Evans) (([email protected])) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))