METALS-London copper edges up on China, US data

(Updates prices) By Mai Nguyen June 3 (Reuters) - London copper prices advanced on Monday after a survey showed strong factory activity in some companies in top consumer China, while a key U.S. inflation print suggested the Federal Reserve is more likely to cut interest rates in September. Three-month copper on the London Metal Exchange CMCU3 rose 0.6% to $10,097.50 per metric ton by 0716 GMT, contrasting a broadly weaker base metals market. The most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 closed down 0.9% at 81,510 yuan ($11,249.59) a ton. China's manufacturing activity in May grew at the fastest pace in about two years, with strong production and new orders across smaller, export-oriented firms, a private sector survey showed, contrasting a surprise fall in the broader official purchasing managers' index. The manufacturing sector consumes a large amount of metals. A softer dollar also made greenback-priced metals cheaper to holders of other currencies. Data released last week showed that U.S. inflation tracked sideways in April, keeping the door open for the Fed to cut rates later in the year. The discount to import copper into China tightened to $10 a ton on Friday, from $20 on May 22, indicating some improvement in physical demand. SMM-CUYP-CN However, overall consumption remained tepid due to high and volatile prices. Copper prices are at risk of a correction in the short term, as spot demand failed to catch up with bullish macroeconomic indicators, Jinrui Futures said in a note. However, the fall is expected to be limited due to raw material supply tightness, it added. LME aluminium CMAL3 eased 0.1% to $2,651 a ton, nickel CMNI3 dropped 1.2% at $19,475, zinc CMZN3 fell 0.9% to $2,942.50, tin CMSN3 shed 2.3% to $32,280, while lead CMPB3 increased 0.1% to $2,275. SHFE aluminium SAFcv1 dropped 1.3% to 21,170 yuan a ton, nickel SNIcv1 shed 2% to 147,430 yuan, zinc SZNcv1 declined 2.4% to 24,180 yuan, tin SSNcv1 decreased 2.6% to 266,850 yuan, while lead SPBcv1 rose 0.1% to 18,770 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.2456 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu, Eileen Soreng and Varun H K) (([email protected]; 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 ))