METALS-Copper prices rebound after solid China factory data

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    By Mai Nguyen
    SINGAPORE, Nov 1 (Reuters) - London copper prices rebounded
on Friday after a sharp fall in the previous session, as a
private survey showed manufacturing activity in China was better
than expected.
    China's factory activity expanded at the fastest pace in
well over two years in October as new export orders rose and
plants ramped up production, the Caixin/Markit Manufacturing
Purchasing Managers' Index showed.
    But the results stand in contrast with an official survey
published on Thursday, which showed China's factory activity
shrank for the sixth straight month in October.
    The official survey focuses more on heavy industry than
Caixin's, and the two surveys cover different places in China,
the world's biggest user of copper that is widely used in
manufacturing.
    Three-month copper on the London Metal Exchange (LME)
 was up 0.7% at $5839 a tonne, as of 0739 GMT, recovering
from a 1.9% drop in the previous session, which was the biggest
fall in almost three months due to the weak China data on
Thursday. It is still heading for a weekly drop.
    "The market indicates prices are up today due to the Caixin
data. However, the impact of the PMI data is limited," said a
China-based base metal analyst.
    Gains in copper prices were capped by uncertainty over
whether the United States and China can reach a trade deal.
    The most-traded copper contract on the Shanghai Futures
Exchange fell as much as 1.3%, reflecting overnight
losses in London, but later recovered to close down 0.5% at
47,120 yuan ($6,694.89) a tonne, posting a 0.7% weekly dip, its
biggest since the week ended Aug. 2.
    
    FUNDAMENTALS
    * TRADE: U.S. President Donald Trump said the United States
and China would soon announce a new site where he and Chinese
President Xi Jinping will sign a "Phase One" trade deal after
Chile cancelled a planned summit set for mid-November.

    * NICKEL: Nickel miner Independence Group NL said
it will stop work on developing a downstream nickel sulphate
facility after winning improved terms in two recent off-take
agreements for concentrate from its Nova mine.
    * AURUBIS: Europe's largest copper producer Aurubis AG
 remains on the hunt for takeovers with a war chest of
about $1 billion, Chief Executive Roland Harings said.

    * LME: The LME complex was higher across the board as the
dollar softened. Aluminium edged up 0.3%, nickel
 advanced 0.9%, while zinc and sister metal lead
 both rose 0.5% and tin inched up 0.03%. 
    * SHFE STOCKS: Copper inventories in warehouses monitored by
the Shanghai Futures Exchange rose 4.8% from the previous week
to 149,911 tonnes, the exchange said on Friday.
    PRICES    
 BASE METALS PRICES                       0739 GMT
 Three month LME copper                       5838
 Most active ShFE copper                     47110
 Three month LME aluminium                    1760
 Most active ShFE aluminium                  13875
 Three month LME zinc                       2494.5
 Most active ShFE zinc                       18950
 Three month LME lead                         2168
 Most active ShFE lead                       16570
 Three month LME nickel                      16790
 Most active ShFE nickel                    134560
 Three month LME tin                         16530
 Most active ShFE tin                       137170
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     748.08
 LME/SHFE ALUMINIUM          LMESHFALc3    -157.83
                                         
 LME/SHFE ZINC               LMESHFZNc3    -1113.5
 LME/SHFE LEAD               LMESHFPBc3   -1263.63
 LME/SHFE NICKEL             LMESHFNIc3   -5093.08
                                         
 
($1 = 7.0382 Chinese yuan renminbi)

 (Reporting by Mai Nguyen; additional reporting by Tom Daly in
Beijing; Editing by Rashmi Aich, Aditya Soni and Susan Fenton)

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