METALS-Copper up on China's easing monetary policy stance, demand rebound, supply concerns

(Updates prices) By Mai Nguyen June 20 (Reuters) - Copper prices rose on Thursday on China's central bank reinforcing its easing monetary policy stance, better end-user demand following recent price drops, and supply concerns. Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.5% at $9,835 per metric ton by 0731 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed up 1.2% at 79,390 yuan ($10,934.96) a ton. The People's Bank of China will stick to a supportive monetary policy stance and will resolutely prevent the exchange rate from overshooting, its governor said on Wednesday. Meanwhile, Anglo American's copper output at its Los Bronces mine in Chile is expected to fall nearly a third from average historical levels next year, highlighting the tightness in raw material supply. As copper prices fell in the past week, companies said end-user orders have returned, leading to a drawdown of domestic spot stockpiles, Jinrui Futures said in a note. Copper prices on the LME fell as low as $9,551 earlier this week from their record highs above $11,000 hit just a month earlier. SHFE copper inventories CU-STX-SGH eased on Friday to 330,753 tons. Prices are expected to be supported in the short term on easing measures and the improvement in spot physical copper demand, Jinrui added. However, a jump in LME copper stocks MCUSTX-TOTAL capped gains, with copper also entering a traditionally slow-demand season. Chances of fewer U.S. rate cuts than previously expected are also weighing on metal prices. LME aluminium CMAL3 rose 0.7% to $2,515.50 a ton, nickel CMNI3 climbed 0.9% to $17,510, zinc CMZN3 edged down 0.1% at $2,867, lead CMPB3 declined 0.3% to $2,192 while tin CMSN3 jumped 1.6% to $32,905. SHFE aluminium SAFcv1 rose 0.6% to 20,595 yuan a ton, nickel SNIcv1 advanced 1.3% to 135,400 yuan, zinc SZNcv1 climbed 1% to 23,840 yuan, tin SSNcv1 increased 2.5% to 273,400 yuan while lead SPBcv1 fell 2.4% to 18,790 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.2602 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich, Sonia Cheema and Janane Venkatraman) (([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 ))