HANOI, Jan 18 (Reuters) - Copper prices in London advanced on Monday as top metals consumer China posted stronger-than-expected growth in the fourth quarter of 2020, boosting demand confidence.
China’s economy grew 6.5% in the previous quarter, faster than the 6.1% forecasts by economists in a Reuters poll, ending a rough coronavirus-striken 2020 in remarkably good shape and remained solidly poised to expand further this year.
Three-month copper on the London Metal Exchange rose 0.2% to $7,963.50 a tonne by 0318 GMT, while aluminium advanced 0.1% to $1,993 a tonne and nickel increased 1.2% to $18,125 a tonne.
The most-traded March copper contract on the Shanghai Futures Exchange fell 0.8% to 58,730 yuan ($9,059.78) a tonne, recouping some of earlier losses of as much as 1.5% before the Chinese data was released.
ShFE aluminium edged up 0.1% to 14,885 yuan a tonne, nickel increased 0.3% to 134,600 yuan a tonne, while zinc dropped 1.2% to 20,285 yuan a tonne.
* China produced 37.08 million tonnes of aluminium in 2020, setting an annual record as smelters cashed in on soaring prices, with December output also hitting a monthly all-time high even as the rally cooled.
* Asian share markets reclaimed lost ground as data confirmed China’s economy had bounced back last quarter as factory output jumped, helping offset recent disappointing news on U.S. consumer spending.