FRX: METALS-Copper at 13-month high, China imports support
MARKETS-METALS (UPDATE 4)
* Copper stocks at highest since May
* Aluminium at 2-month high
* Zinc at 17-month peak, Century problems support
(Updates prices, adds detail)
By Rebekah Curtis
LONDON, Oct 26 (Reuters) - Copper rose to a 13-month high on Monday, boosted by data showing hefty imports of the metal into China, while the dollar's slide to a 14-month low against the euro also supported sentiment.
Copper for three-months delivery on the London Metal Exchange was quoted at $6,695/6,696 a tonne in official rings, from a close of $6,649 on Friday. It earlier rose to $6,728, its highest since late September 2008.
China reported a near-30 percent rise in copper imports in September to 282,828 tonnes, fanning bullish sentiment that the world's biggest copper consumer would continue to draw in metal at a phenomenal rate.
September's inflow was the fifth highest on record.
"We have a very good floor for prices because of Chinese buying," said Andrey Kryuchenkov, an analyst at VTB Capital.
"Imports from China will probably stay strong."
Despite the increase, some analysts remain concerned about rising LME stocks, which at 368,850 tonnes are at their highest since mid-May. Latest data showed LME stocks rose 1,775 tonnes.
For graphics showing global exchange metals stocks,
China's economic growth is likely to speed up this quarter, but the government will stay the course on its fiscal stimulus and loose monetary policy, senior officials said on Monday.
DOLLAR SUPPORTS
The dollar fell after a Chinese report said Beijing should increase its holdings of euros and yen in its foreign reserves.
The U.S. currency has shed some 7 percent against a currency basket so far this year, supporting dollar-priced commodities by making them cheaper for holders of other currencies.
"While we continue to remain bearish on the dollar's longer-term prospects, we suspect that we are quite oversold in the short-term," MF Global said in a note.
"We therefore would be wary about chasing this current bounce in metals, enticing as it looks on many of the charts."
Sentiment has also been boosted by some supportive macroeconomic data, including Friday's upbeat U.S. existing home sales and bigger-than-expected rise in new industrial orders in the Eurozone in August.
Data due later on Monday includes the U.S. Federal Reserve Bank of Dallas' Texas manufacturing index for October and the U.S. Federal Reserve Bank of Chicago's Fed Midwest manufacturing Index for September.
Aluminium traded at $2,010 from $1,972. The metal used in transport and packaging touched a day's high of $2,020, its highest since late August.
Zinc was at $2,345 from $2,273, having earlier touched $2,351, its highest since May 2008. It is on course for a 20-percent rise this month, its strongest since October 2006.
The metal, which jumped over 10 percent last week, saw continued support from an outage at Chinese-owned Century zinc mine in Australia after the failure of a pipeline carrying concentrate from the mine to port.
Repairs were expected to take another two or three weeks.
The operation also reported a 9 percent fall in output in the September quarter due to a change in the mine plan.
Battery material lead rose to $2,393 from $2,360, while tin was at $15,250 from $15,145. Nickel was quoted at $19,230/19,235 from $18,950.
