(Adds Shanghai closing prices, updates London prices)
BEIJING, Jan 16 (Reuters) - London copper prices advanced
for a second straight session on Wednesday, as a weaker dollar
made the base metal cheaper for holders of other currencies, and
indications of more stimulus from top consumer China buoyed
investor sentiment.
In a sign of improving liquidity, Chinese banks extended far
more new loans in December than expected, bringing last year's
tally to a record $2.4 trillion.
Visible copper stocks around the world are "relatively low"
and could support prices, brokerage GF Futures said in a note,
but warned that Chinese copper demand could still take a turn
for the worse.
China copper import premiums SMM-CUYP-CN have risen to $73
a tonne from an 18-month low of $62.50 in early December,
indicating greater near-term demand for the physical metal.
FUNDAMENTALS
* LME COPPER: Three-month copper on the London Metal
Exchange was up 0.8 percent at $5,968 a tonne, as of
0705 GMT, extending Tuesday's 0.4 percent gain.
* SHFE COPPER: The most-traded March copper contract on the
Shanghai Futures Exchange closed up 1.1 percent at
47,380 yuan ($7,004.94) a tonne, marking its first gain in four
sessions.
* BREXIT: British lawmakers defeated Prime Minister Theresa
May's Brexit divorce deal by a crushing margin on Tuesday,
triggering political chaos.
* CHINA: China on Tuesday signalled more stimulus measures
in the near term as it aims to achieve "a good start to 2019" in
the first quarter.
* ALUMINIUM: London aluminium rose as much as 1.7
percent to a one-week high of $1,876.50 after the U.S. Senate
voted to move ahead with a resolution disapproving of a Trump
administration plan to ease sanctions on Russian aluminium giant
Rusal.
* ALUMINA: Norsk Hydro said Brazil's northern state
of Para has lifted a production embargo on its Alunorte alumina
refinery but noted full production will not resume until a
federal court follows suit.
* OTHER METALS: Zinc rose as much as 2.6 percent in Shanghai
to 20,890 yuan a tonne, the highest since Dec. 21,
before closing at 20,860 yuan. The metal used to galvanise steel
was also up 1.7 percent in London. Shanghai nickel
closed up 1.6 percent at 93,230 yuan a tonne after
hitting its highest since Dec. 3, 2018.
* For the top stories in metals and other news, click
or
MARKETS NEWS
* Global share markets and the sterling weathered a UK
political storm as investors wagered that London will have no
choice but to delay its Brexit deadline to avoid a disorderly
exit from the European Union.
PRICES
BASE METALS PRICES 0707 GMT
Three month LME copper 5970.5
Most active ShFE copper 47370
Three month LME aluminium 1870
Most active ShFE aluminium 13400
Three month LME zinc 2496
Most active ShFE zinc 20855
Three month LME lead 1977
Most active ShFE lead 17585
Three month LME nickel 11680
Most active ShFE nickel 93220
Three month LME tin 20690
Most active ShFE tin 148750
BASE METALS ARBITRAGE
LME/SHFE COPPER LMESHFCUc3 472.73
LME/SHFE ALUMINIUM LMESHFALc3 -1277.79
LME/SHFE ZINC LMESHFZNc3 624.19
LME/SHFE LEAD LMESHFPBc3 1284.88
LME/SHFE NICKEL LMESHFNIc3 3946.9
($1 = 6.7638 Chinese yuan)
(Reporting by Tom Daly, Editing by Sherry Jacob-Phillips and
Subhranshu Sahu)
