Copper bounces back as limited inventories lend support
Nov 1 (Reuters) - Copper prices rose in thin-volume trades on Monday, rebounding from two straight weeks of declines, as tight inventories in exchange warehouses lent support.
Three-month copper on the London Metal Exchange rose 0.8% to $9,569 a tonne by 0526 GMT, having lost a combined 7.6% in the previous two weeks.
On-warrant LME copper inventories <MCUSTX-TOTAL> edged up slightly to 31,745 tonnes but were still hovering near their lowest since 1998 of 14,150 tonnes hit on Oct. 14, with cash premium over the three-month contract <MCU0-3> last at $312.50 a tonne, indicating tight nearby supplies.
The most-traded December copper contract on the Shanghai Futures Exchange edged down 0.3% to 70,600 yuan ($11,026.08) a tonne.
ShFE copper stocks rose for the first time in three weeks <CU-STX-SGH> to 49,327 tonnes, but were still down some 80% from May.
China's October factory activity grew at its fastest pace in four months as new orders rose and disruptive power shortages started to ease, the Caixin/Markit private survey showed.
China is the world's biggest consumer of copper, used widely in manufacturing.
However, the relative strength in the Caixin data contrasts with an official survey released on Sunday that showed China's factory activity shrank for a second month, hurt by persistently high raw material prices and softer domestic demand.
FUNDAMENTALS
* LME aluminium rose 1.6% to $2,760 a tonne, nickel increased 1% to $19,645 a tonne, while ShFE zinc jumped 3.1% to 24,405 yuan a tonne and ShFE tin surged 5.1% to 274,580 yuan a tonne.
* For the top stories in metals and other news, click or
MARKETS NEWS
* Asian stocks wavered, with Japanese companies catching a post-election boost but weak Chinese data weighing on the broader mood ahead of policy meetings in the United States, Britain and Australia that are set to define the rates outlook.
DATA/EVENTS (GMT)
0930 UK Markit/CIPS Mfg PMI Final
1345 US Markit Mfg PMI Final
1500 US ISM Manufacturing PMI ($1 = 6.4030 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich)
