METALS-Copper climbs as markets await US inflation numbers

(Updates prices) By Pratima Desai LONDON, Feb 12 (Reuters) - Copper prices rebounded on Monday after three sessions of losses as traders and funds cut short positions betting on lower prices as the market awaited U.S. inflation data that could indicate when the Federal Reserve might cut interest rates. Benchmark copper CMCU3 on the London Metal Exchange (LME)traded up 0.9% at $8,241 a metric ton by 1700 GMT. Prices of the metal used widely in the power and construction industries hit three-month lows of $8,127 last week on concern over demand prospects in top consumer China. U.S. Comex copper futures HGcv1 gained 0.9% to $3.72 a lb. "Short covering has supported copper this morning," one copper trader said. "It's quiet because of the Chinese holiday, people are still nervous about Chinese demand. What happens to the dollar this week will be very important in China's absence." U.S. consumer prices due this week could determine when U.S. interest rates are cut. That, in turn, could weaken the dollar, making dollar-priced metals cheaper for holders of other currencies. Overall, industrial metals are expected to remain under pressure from trouble in China's property sector, which now seems to be rippling out into the rest of the world. "Real estate fears, which first appeared and remain to the fore in China, are spreading to the U.S., where New York Community Bancorp has been hammered for its exposure to commercial property," broker Marex said in a note. Elsewhere, zinc CMZN3 advanced 1% to $2,322.50 a ton, after touching its lowest since last August at $2,278, hit by surpluses of the metal used to galvanise steel, a key material for the construction industry. Zinc stocks in LME-registered warehouses MZNSTX-TOTAL have climbed 25% since late December to 238,275 tons, their highest since August 2021. Commodity trader Trafigura has delivered large amounts of zinc to LME warehouses in Singapore under lucrative rent-sharing deals, three sources familiar with the matter told Reuters. In other metals, aluminium CMAL3 added 0.6% to $2,230 a ton, nickel CMNI3 firmed by 0.9% to $16,060 while lead CMPB3 slipped 0.4% to $2,023.50. Tin CMSN3 jumped 3% to $27,155, the highest since August last year. (Reporting by Pratima Desai Editing by Shilpi Majumdar, 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 ))