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RTRS: India copper trades higher as China data supports
 
MUMBAI, Dec 11 (Reuters) - India copper futures traded higher on Friday buoyed by strong Chinese industrial output data, rising imports of the red metal along with falling inventory levels in Shanghai, analysts said.

The most-traded copper February contract MCCG0 was 1.09 percent higher at 323.3 rupees per kg at 6:01 p.m.

Chinese industrial output surged in November to its fastest pace since June 2007, underlining the economy's brisk recovery from the global downturn. [ID:nTOE5BA02W]

China's imports of unwrought copper and semi-finished copper products rose 10.3 percent in November from the previous month to 290,158 tonnes, defying market expectations for flat to a slight decline. [ID:nTOE5B8069]

Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 9 percent from one week earlier to 95,676 tonnes from 104,710 tonnes.

"These two factors of rising industrial output and falling stocks in Shanghai are helping copper," said Praveen Singh, an analyst with Sharekhan Commodities.

Copper could test 327 rupees in the short-term, said Singh.

However, a strong rupee, which makes the dollar-quoted asset cheaper, kept the upside limited, they added.

The Indian rupee extended its rise on Friday afternoon helped by stronger regional peers with losses in the dollar versus major units also helping sentiment. [INR/]

In other base metals, zinc December MZIZ9 was 1.61 percent higher at 107.25 rupees per kg, while lead for December delivery MLDZ9 was 1.80 percent higher at 107.55 rupees per kg.

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