News: RIO METALS--Fresh buying lifts China copper as U.S. dollar weakens, inventories drop

SYDNEY, Oct 24 (Reuters) - A wave of fresh investment drove Chinese copper futures more than 2 percent higher on Tuesday.

Traders said the weaker U.S. dollar prompted investors to buy into copper contracts on the London Metal Exchange (LME). The lower greenback makes dollar-denominated LME contracts less expensive for holders of other currencies.

FUNDAMENTALS

• LME COPPER: Three-month copper on the London Metal Exchange CMCU3 was steady at $7,098.50 a tonne by 0245 GMT, maintaining gains from the previous session.

  Copper prices breached $7,000 a tonne last week for the first time in more than three years as inventories of metal continue to fall, according to ANZ bank.

  LME copper stockpiles are down 10 percent over the past four weeks, with more than 13,000 tonnes of copper warrants cancelled - a sign of further deliveries out of warehouses in coming days, ANZ said.

• SHFE COPPER: The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained just over 2 percent to 55,820 yuan ($8,417) a tonne.
• DOLLAR DOWN: The dollar edged down on Tuesday as attention turned to who would be the next head of the U.S. central bank.
• CHINA REFINED COPPER OUTPUT: Data released on Monday showed China's refined copper output was the highest since December 2014.
• RIO TINTO CLASS ACTION: A U.S. law firm has filed a class action suit against mining giant Rio Tinto (RIO), , which is facing U.S. Securities and Exchange Commission (SEC) fraud charges stemming from an ill-fated investment in Mozambique coal mining.
• CHINA AIR STANDARD: China will strive to comply fully with its own air quality standards by 2035, the country's environment minister said on Monday, adding that the long and difficult battle against pollution would eventually benefit the economy.
• For the top stories in metals and other news, click [TOP/MTL] or [MET/L]

  MARKETS NEWS

• Asian shares held within striking distance of recent decade highs on Tuesday even as Wall Street fell from record levels, while currencies kept to narrow ranges ahead of key economic events.[MKTS/GLOB]

  DATA AHEAD (GMT) 0645 France Business climate Oct 0700 France Markit manufacturing PMI flash Oct 0730 Germany Markit manufacturing PMI flash Oct 0900 Euro zone Markit manufacturing PMI flash Oct 1345 U.S. Markit manufacturing PMI flash Oct

  PRICES Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1

  ARBS LMESHFCUc3 LMESHFALc3 LMESHFZNc3 LMESHFPBc3 LMESHFNIc3

($1 = 6.6317 Chinese yuan renminbi)

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