METALS-Shanghai copper gains on signs of improving China demand

(Updates prices as of 0345 GMT) BEIJING, March 12 (Reuters) - Shanghai copper outperformed its peers in the base metals complex on Wednesday, gaining more than 1% on signs of improving demand in top metals consumer China. The most-active copper contract on the Shanghai Futures Exchange SCFcv1 closed morning trade 1.74% higher at 79,140 yuan ($10,939.10) a metric ton after hitting the highest since September 30, 2024 at 79,390 yuan. 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 utilisation rates, 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 1.13% to 20,990 yuan a ton, zinc SZNcv1 added 0.99% to 23,945 yuan, tin SSNcv1 advanced 0.7% to 264,330 yuan, lead SPBcv1 gained 0.11% to 17,480 yuan, and nickel SNIcv1 ticked 0.2% higher at 132,880 yuan. Three-month copper on the London Metal Exchange (LME) CMCU3 ticked 0.52% higher to $9,729 a ton, as of 0345 GMT. LME aluminium CMAL3 edged 0.41% higher to $2,715 a ton, lead CMPB3 added 0.29% to $2,061, nickel CMNI3 advanced 0.49% to $16,560, while tin CMSN3 edged down 0.03% to $33,150, zinc CMZN3 lost 0.14% to $2,916. ($1 = 7.2346 Chinese yuan) (Reporting by Amy Lv and Lewis Jackson; Editing by Sherry Jacob-Phillips and Subhranshu Sahu) ((Amy.Lv@thomsonreuters.com;))