METALS-Shanghai copper gains on signs of improving China demand

BEIJING, March 12 (Reuters) - Shanghai copper outperformed its peers in the base metals complex, gaining more than 1% on Wednesday, supported by signs of improving demand in China, the top metals consumer. The most-active copper contract on the Shanghai Futures Exchange SCFcv1 was up 1.25% at 78,760 yuan ($10,901.34) a metric ton, as of 0234 GMT. Underlying fundamentals are showing improvement, with the ANZ Downstream Copper Demand Indicator showing positive growth, especially in grid infrastructure and electric vehicles, ANZ analysts said in a note. "Manufacturers, supported by recent stimulus measures, are ramping up production ... copper cathode inventories in Shanghai and Guangdong extended declines from a peak due to fewer imports in recent months." Refined copper output in China will likely slide in April as more smelters will start equipment maintenance and those suffering severe loss will lower their capacity utilization rate, analysts at First Futures said in a note. Copper cathode output among smelters surveyed jumped by 5.28% year-on-year to 1.9 million tons in the January-February period, state-backed research house Antaike said in a note on Tuesday, forecasting March output to grow by 4.32% from the year before to 969,000 tons. China consumes about half of global copper supplies annually. Fears of a global trade war, however, limited its price gains, ANZ analysts said. SHFE aluminium SAFcv1 rose nearly 1% to 20,960 yuan a ton, zinc SZNcv1 added 0.95% to 23,935 yuan, tin SSNcv1 advanced 0.57% to 263,990 yuan, lead SPBcv1 little changed at 17,455 yuan, while nickel SNIcv1 eased 0.26% to 132,270 yuan. Three-month copper on the London Metal Exchange (LME) CMCU3 nudged 0.03% higher to $9,682 a ton. LME aluminium CMAL3 edged 0.22% higher to $2,710 a ton, lead CMPB3 added 0.19% to $2,059, while tin CMSN3 edged down 0.05% to $33,145, zinc CMZN3 lost 0.02% to $2,919.5 and nickel CMNI3 shed 0.15% to $16,455. ($1 = 7.2248 Chinese yuan) (Reporting by Amy Lv and Lewis Jackson; Editing by Sherry Jacob-Phillips) ((Amy.Lv@thomsonreuters.com;))