* Trading rangebound but hopes for global recovery persist
* LME copper eases after steep gains in the week
* China aluminium output above 1 mln tonnes in June
* Shanghai copper stocks drop, LME inventory rises
(Adds LME, Shanghai warehouse stocks)
By Manolo Serapio Jr.
MANILA, July 17 (Reuters) - Shanghai copper edged up for a
fourth day running on Friday and posted its biggest weekly gain
in more than a month, supported by signs the global economy had
bottomed out.
Data released on Thursday showed China's annual gross
domestic product growth quickened to a stronger-than-forecast
7.9 percent in the second quarter, making it the
best-performing major economy and reinforcing hopes the world
economy is pulling out of its deepest recession in 80 years.
[ID:nSP537798]
Shanghai's third month copper contract SCFc3 closed up
0.5 percent at 41,750 yuan ($6,113) a tonne, and rose 5.7
percent on the week. The contract hit a nine-month peak of
42,290 yuan a tonne on Thursday, aided by the Chinese data.
"We are getting into recovery position, all leading
indicators are getting better and some of the European and U.S.
data are also suggesting that things have already bottomed
out," said Bonnie Liu at Macquarie.
"It's only a matter of time before people see a real
pick-up of the global economy.
Three-month copper on the London Metal Exchange MCU3 fell
$30 to $5,230 a tonne by 0701 GMT, but is on course for a gain
of more than 7 percent in its strongest weekly showing since
early March.
"At the moment, I think the movement in copper prices is
really modest and still within the sort of ranges we've seen in
recent days, so I wouldn't read too much into it," said David
Moore, commodity strategist at Commonwealth Bank of Australia.
There was more mixed news on the U.S. economy on Thursday
with the number of Americans filing for jobless benefits last
week falling to the lowest level since January, while a key
regional manufacturing index slipped more than expected in
July. [ID:nN16398331]
Investors also remain concerned about the tightness in the
copper market, with data showing a dominant position
controlling between 50 percent and 80 percent of LME copper
stocks.
Traders said this was behind copper flipping into
backwardation earlier this week -- the first time since May --
with the premium for LME cash copper over the three-month
contract at $7/$14 on Friday.
In Shanghai, copper stocks in warehouses monitored by the
futures exchange dropped a modest 884 tonnes from the previous
week to 53,283 tonnes, compared with a fall of more than 5,800
tonnes a week earlier.
Inventory of the industrial metal in LME warehouses rose
3,275 tonnes to 264,150 tonnes on Friday.
For graphics on global stocks of copper, aluminium and
zinc, click:
here
here
here
Elsewhere, LME aluminium MAL3 dropped $4.75 to $1,685.30 a
tonne, after hitting a session-high of $1,699, its best level
since early June, even as a record-level inventory of the
lightweight metal at above 4.5 million tonnes continued to
worry investors.
Boosting supply further, production of primary aluminium in
China topped 1 million tonnes for the first time this year in
June due to high prices and local governments encouraging
smelters to bring new and idled capacity online.
[ID:nHKG323853]
Base metals prices at 0702 GMT
Metal Last Change Pct Move End 2008 Pct chg
09
LME Cu 5220.00 -40.00 -0.76 3060.00
70.59
SHFE Cu* 41750.00 210.00 +0.51 23840.00
75.13
LME Alum 1680.00 -10.00 -0.59 1535.00
9.45
SHFE Alum* 13645.00 130.00 +0.96 11540.00
18.24
COMEX Cu** 238.10 0.10 +0.04 139.50
70.68
LME Zinc 1540.00 -9.00 -0.58 1208.00
27.48
SHFE Zinc 13420.00 180.00 +1.36 10120.00
32.61
LME Nickel 16000.00 -100.00 -0.62 11700.00
36.75
LME Lead 1625.00 5.00 +0.31 999.00
62.66
LME Tin 12975.00 -50.00 -0.38 10700.00
21.26
