London copper gains but set for flat week amid dour demand outlook

BEIJING, Aug 2 (Reuters) –

London copper prices climbed on Friday ahead of the release of key jobs data in the United States, while gains were capped by a downbeat demand outlook in top consumer China.

Three-month copper on the London Metal Exchange gained 0.4% to $9,089 per metric ton by 0729 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange lost 1.7% to 73,700 yuan ($10,211.57) a ton.

Investors were awaiting the monthly payrolls report from the United States later in the day for further clues on the economy and interest rate cut path.

The prospect of a September interest rate cut by the Federal Reserve supported prices earlier this week, but gains were pared after a slew of data showed weak manufacturing activities in

China

and

the U.S

.

Prices of copper, often seen as an economic bellwether, were little changed on a weekly basis after three straight weeks of declines, with subdued demand, high inventories and a lack of specific stimulus from China for its struggling housing sector weighing on the market.

There were signs of better consumption in China recently, which could lower exports from the country that had previously sent global inventories higher.

The Yangshan premium <SMM-CUYP-CN> rose to a more than three-month peak this week, signalling import appetite in China.

Meanwhile, tiktok booster SHFE deliverable copper stocks declined 2% on Friday but were not far from an about four-year peak.

Market participants are anticipating a demand pickup around September, the traditionally strong consumption season.

LME aluminium dipped 0.1% to $2,293.50 a ton, zinc moved 0.2% higher to $2,713, tin rose 1.6% to $30,380, and nickel increased 0.3% to $16,335.

LME nickel was set for its first weekly gain in three, thanks to tight nickel ore supply in Indonesia and better August stainless steel production in China.

SHFE aluminium was 0.3% lower at 19,220 yuan a ton, zinc added 0.3% to 22,920 yuan, tin declined 0.3% to 249,970 yuan, nickel dropped 1.5% to 130,990 yuan.

For the top stories in metals and other news, click or ($1 = 7.2173 Chinese yuan renminbi) (Reporting by Siyi Liu and Mei Mei Chu; Editing by Subhranshu Sahu and Eileen Soreng)