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METALS-Copper falls as China inflation fuels fears of credit tightening

(Updates prices)

HANOI, April 9 (Reuters) - Copper prices fell on Friday, cutting gains for the week as rising inflation in top consumer China stoked worries that the world’s second-largest economy could tighten monetary policy.

Three-month copper on the London Metal Exchange (LME) fell 0.8% to $8,938.50 a tonne by 0736 GMT, up 1.7% this week.

The most-traded May copper contract on the Shanghai Futures Exchange closed 0.1% up at 66,720 yuan ($10,171.97) a tonne.

“Optimism about an accommodative monetary policy in the U.S. was offset by rising concerns about inflation in China,” Marex Spectron commodities broker Anna Stablum said in a note.

China’s factory gate prices in March beat analyst expectations to rise at their fastest annual pace since July 2018.

Despite data showing signs that economic recovery in China is gathering momentum, investors were concerned that the country’s central bank will tighten monetary policy, dampening money supply into financial markets.

FUNDAMENTALS

* Chinese battery materials maker CNGR Advanced Material Co plans to set up a joint venture in Indonesia to produce nickel matte, used to make chemicals for electric car batteries, with a Singapore-based partner.

* China’s Jiangxi Copper Co is not building or investing in a previously planned project to make refined copper from scrap in eastern Malaysia, its chairman said.

* LME aluminium fell 0.4% to $2,273.50 a tonne while zinc declined 1% to $2,825. In Shanghai, nickel advanced 0.4% to 126,170 yuan a tonne while tin dropped 0.6% to 181,560 yuan.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

$1 = 6.5592 yuan Reporting by Mai Nguyen Editing by David Goodman

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