News: RIO METALS-London copper climbs on robust demand; China leadership meet in focus

(Adds comment, detail, updates prices)

London copper climbed on Wednesday, supported by healthy demand growth expectations and relief from a stronger dollar, while markets looked ahead to policy announcements from China's Communist Party conference.

"China's underlying demand for copper remains stable and solid," said Hong Kong-based broker Argonaut Securities.

There has been stable demand from China's power sector, and strong demand from its auto and electronic sectors, which has offset a slight slowdown in construction, and weak demand from the home appliance sector, it said.

More broadly, a pickup in global manufacturing has also brightened the demand outlook, analyst Helen Lau said.

"(A) synchronized PMI expansion, especially in the US, Europe and Japan points to a rosy demand recovery outlook, positive for copper demand."

FUNDAMENTALS

• LME COPPER: London Metal Exchange copper CMCU3 climbed by 0.4 percent to $7,054.50 a tonne by 0447 GMT, after giving up 1.5 percent in the previous session.
• SHFE COPPER: Shanghai Futures Exchange copper SCFcv1 slipped by 1 percent to 54,880 yuan ($8,303) a tonne.
• CHINA CONGRESS: Chinese President Xi Jinping opened a critical Communist Party Congress on Wednesday with a pledge to build a "modern socialist country" that will never copy the political systems of others and will remain open to the world.

• CHINA ALUMINIUM: The Chinese government's campaign to reduce smog pollution and whittle down excess production is set to take around a tenth of its aluminium smelting capacity out of the market by the year-end, potentially adding fuel to a months-long price rally.
• ZINC, LEAD: In Shanghai, zinc SZNcv1 and lead SPBcv1 fell by 2.4 and 3.3 percent, respectively, tracking losses in Shfe rebar SRBcv1 which fell 1 percent. Zinc stocks jumped by 16,250 tonnes after a large delivery order for tonnage from Antwerp was cancelled. <0#MZNSTX-LOC-GRD>
• METALS DEMAND: Flush order books and solid output figures boosted morale among German investors in October, the ZEW research institute said on Tuesday, suggesting a strong phase of growth in Europe's biggest economy has further to run.
• PERU: More than 20 companies have expressed an interest in bidding on the $2 billion Peruvian copper project Michiquillay in an auction due to take place on Dec. 20, the Peruvian government said on Monday.
• RIO TINTO: The U.S. Securities and Exchange Commission (SEC) on Tuesday charged mining company Rio Tinto Plc , (RIO) and two of its former top executives with fraud, saying they inflated the value of coal assets in Mozambique and concealed critical information while tapping the market for billions of dollars.
• For the top stories in metals and other news, click [TOP/MTL] or [MET/L]

  MARKETS NEWS

• Asian shares consolidated recent gains and currencies kept to tight ranges on Wednesday. [MKTS/GLOB]

  DATA/EVENTS BASE METALS PRICES 0449 GMT Three month LME copper CMCU3 7051 Most active ShFE copper SCFcv1 54880 Three month LME aluminium CMAL3 2133 Most active ShFE aluminium SAFcv1 16120 Three month LME zinc CMZN3 3089.5 Most active ShFE zinc SZNcv1 25230 Three month LME lead CMPB3 2504 Most active ShFE lead SPBcv1 19660 Three month LME nickel CMNI3 11800 Most active ShFE nickel SNIcv1 94380 Three month LME tin CMSN3 20505 Most active ShFE tin SSNcv1 145950 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 408.98 LME/SHFE ALUMINIUM LMESHFALc3 -304.58 LME/SHFE ZINC LMESHFZNc3 768.06 LME/SHFE LEAD LMESHFPBc3 -494.11 LME/SHFE NICKEL LMESHFNIc3 1757.87

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