July 5, 2019 / 3:03 AM / 3 months ago

METALS-Copper set for 1st weekly fall in 4 on weak demand outlook

SINGAPORE, July 5 (Reuters) - London copper prices eased on Friday and were set for their first weekly fall in four, due to tepid demand outlook and rising supplies.

Three-month copper on the London Metal Exchange eased 0.1% to $5,911.50 a tonne, or a 1.4% fall on a weekly basis by 0227 GMT, as inventories in the London Metal Exchange (LME) warehouse system hovered around a one-year high level. This will be the metal contract's first weekly fall since the week ended June 7. MCUSTX-TOTAL

The most-traded copper contract on the Shanghai Futures Exchange (ShFE) fell 0.2% to 46,380 yuan ($6,744.32) a tonne. Inventories in warehouses tracked by ShFE have been falling in recent months but were still up 23% so far this year. CU-STX-SGH

"We expect (near-term) copper to continue to trade in tight range while struggling with weak demand outlook. Rising inventory on ShFE and on LME reflects demand has yet to recover," Argonaut Securities' analyst Helen Lau said in a note.

FUNDAMENTALS

* CHINA LOANS: Chinese banks extended less in new yuan loans in June, according to a Reuters calculation based on official data, but regulators assured that credit needs of the broader economy were met.

* GLENCORE: Congolese security forces evicted thousands of illegal miners from a copper and cobalt mine run by Glencore on Thursday, sparking angry protests outside the governor's office and looting of shops, local activists said.

* ZAMBIA: Zambia is planning a law to compel mining firms to give local suppliers a fair share of procurement, its mines minister said on Thursday, in the latest sign of the government taking an interventionist approach in its mining sector.

* PRICES: London aluminium edged up 0.1%, nickel fell 0.3%, zinc eased 0.1% and lead declined 0.1%. In Shanghai, aluminium rose 0.5%, nickel fell 0.4% and zinc dropped 1.4%.

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MARKETS NEWS

* Asian shares hovered near two-month highs, holding recent gains as investors awaited U.S. employment data, a key release that could make or break market expectations about aggressive policy easing by the Federal Reserve.

DATA/EVENTS

0600 Germany Industrial Orders MM May

0730 UK Halifax House Prices MM June

1230 US Non-Farm Payrolls June

1230 US Unemployment Rate June

1230 US Average Earnings YY June

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

ARBS ($1 = 6.8769 Chinese yuan)

Reporting by Mai Nguyen; Editing by Rashmi Aich

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