METALS-Copper rebounds ahead of news on further China stimulus

(Recasts with updated prices) By Eric Onstad LONDON, Oct 10 (Reuters) - Copper prices bounced on Thursday on hopes that top metals consumer China would announce a fiscal stimulus package that would boost metals demand. Three-month copper CMCU3 on the London Metal Exchange (LME) rose 0.6% to $9,734.50 a metric ton by 1625 GMT, having hit its lowest in more than two weeks on Wednesday. U.S. Comex copper futures HGc2 gained 1.1% to $4.40 a lb. Prices have returned to levels reached before China started announcing supportive measures for its flagging economy, which have been below expectations and lacked detail. "Metals will probably be in a holding pattern ahead of a catalyst that will hopefully come when the minister of finance holds a press conference," said WisdomTree commodities strategist Nitesh Shah. China's finance ministry will detail plans on fiscal stimulus to boost the economy at a news conference on Saturday. "If a fiscal package has significant amounts of actual spending on the real estate sector, possibly combined with further support for new energy infrastructure, we may start to see some of the stockpiles come down," Shah said. Metals also found support as the dollar =USD pared gains after the release of U.S. inflation data. A strong dollar makes commodities priced in the U.S. currency more expensive for buyers paying with other currencies. FRX/ However, demand risk remains. "The latest rally in copper prices, as well as the (Oct. 1-7) National Day Holiday, has weakened purchasing interest of semis (semi-fabricated) manufacturers, especially copper wire rod players," said Wood Mackenzie consultant Zhifei Liu. LME copper prices have declined 1.3% this month after rising 6.4% in September for the best monthly gain since April. Among other metals, LME aluminium CMAL3 climbed 2.1% to $2,593.50 a ton, nickel CMNI3 added 1% at $17,550, zinc CMZN3 advanced 2.6% to $3,097.50, lead CMPB3 rose 0.4% to $2,069.50 and tin CMSN3 climbed 1.3% to $32,905. For the top stories in metals, click TOP/MTL ($1 = 7.0718 yuan) (Reporting by Eric Onstad Additional reporting by Mai Nguyen in Hanoi Editing by David Goodman and Richard Chang) (([email protected]; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: [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 ))