July 11 (Reuters) -
Copper prices rose on Thursday, supported by a softer dollar and expectations of more economic support measures in top consumer China, but rising inventories capped gains.
Three-month copper on the London Metal Exchange (LME) rose 0.1% to $9,917.50 per metric ton by 0510 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange (SHFE) was also 0.1% higher at 79,950 yuan ($10,996.19) a ton.
Recent disappointing data in China raised hopes that Beijing will unveil more economic stimulus at a key political meeting over July 15-18.
"The prospect of easing monetary policy (in China) boosted sentiment in the base metals sector. However, signs of weak demand limited the gains," ANZ analysts said in a note.
LME copper inventories
The LME cash copper contract was trading at a $161.41 a ton
discount to the three-month contract, the biggest discount since
at least 1982, signalling abundance supply in the near term.
Nickel inventories also climbed in the LME warehouses and
were last at 98,088 tons, the highest since January 2022, due to
rising production from Indonesia and sluggish consumption.
Tin stockpiles in LME warehouses, however, fell to 4,450 tons, the lowest since April 23, due to lower supply from Indonesia.
LME aluminium rose 0.2% to $2,488 a ton, zinc advanced 0.7% to $2,986.50, lead climbed 0.8% to $2,196, tin increased 0.4% to $35,150 while nickel eased 0.1% to $16,870.
SHFE aluminium dipped 0.1% to 20,230 yuan a ton, nickel dropped 0.9% to 134,090 yuan, while zinc rose 1.1% to 24,510 yuan, lead increased 0.4% to 19,560 yuan and tin jumped 1.3% to 281,740 yuan.
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($1 = 7.2707 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng)