http://www.cnbc.com/id/102104552 METALS-London copper climbs as...

http://www.cnbc.com/id/102104552

METALS-London copper climbs as weak China growth stokes stimulus hopes

Melanie Burton
11 Mins AgoReuters

COMMENTSStart the Discussion

* China Q3 economic growth slows to 7.3 pct from 7.5 pct in Q2
* Nickel down to 7-month low
* Coming Up: U.S. existing home sales Sep at 1400 GMT
(Recasts with China data)
SYDNEY, Oct 21 (Reuters) - London copper edged up on Tuesday as hopes grew of more stimulus measures from China after the top consumer of the metal reported a slowing of third-quarter economic growth to its weakest since the 2008/09 global financial crisis.
Growth in the world's second-biggest economy cooled to 7.3 percent between July and September from a year earlier, slightly above the 7.2 percent forecast by analysts but slowing from 7.5 percent in the second quarter.
That reinforced expectations that Beijing will need to roll out more stimulus to avert a sharper slowdown, bolstering copper prices which are not far from six-month lows.
"The data looks in line with our central case, which is continued moderation in China's growth outlook, but still on an absolute basis, reasonably buoyant," said Daniel Morgan, analyst at UBS in Sydney.
Moderating economic growth figures would prompt further government support, with any easier credit availability helping copper demand to recover, he added.
China's economic slowdown in the third quarter was due to structural reforms in the nation, a sagging housing market and higher comparison figures from a year ago, the National Bureau of Statistics said, but noted that growth stayed in a "reasonable range."
UBS sees Chinese copper demand growth at 7.2 percent this year, easing to 6.8 percent next year with prices averaging $3.00 a pound this year ($6,600 a tonne) and $2.90 in 2015.
Three-month copper on the London Metal Exchange had climbed 0.5 percent to $6,590 a tonne by 0253 GMT, paring losses of 1.2 percent in the previous session. Copper prices hit a six-month trough of $6,530 a tonne on Friday and have dropped 10 percent this year.
The most-traded December copper contract on the Shanghai Futures Exchange traded flat at 47,160 yuan ($7,705) a tonne.
A slowdown in China's property sector growth continues to be a drag on its economy and on its demand for metals.
Chinese real estate investment growth eased to 12.5 percent in the first nine months of 2014 from a year earlier, while revenue from property sales dropped 8.9 percent on an annual basis, the statistics agency said on Tuesday.
On the supply side, higher mine output may not necessarily lead to a surplus in the market for refined copper cathodes next year, as smelters are experiencing a bottleneck of raw material, Europe's biggest copper smelter Aurubis said on Monday.
Germany and France sought to paper over deep differences about how to buoy a faltering European economy, promising on Monday to unveil joint proposals on strengthening investment and competitiveness by early December.
Among other metals, LME nickel fell to a new 7-month low of $15,175 a tonne, which has damaged its chart picture and may trigger further selling.
"We remind readers that $15,000/$15,200 is a very important support area, as it was the old resistance area before the March 14 "break-up" after a long lateral consolidation," broker Triland said in a note.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminum
Most active ShFE aluminum
Three month LME zinc
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Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin (1 US dollar = 6.1210 Chinese yuan)
(Editing by Joseph Radford and Muralikumar Anantharaman)