* ShFE shut for week-long China holiday
* Coming up: U.S. ISM-New York index Sep at 1345 GMT (Adds comment, detail; updates prices)
By Melanie Burton
MELBOURNE, Oct 4 (Reuters) - London copper edged up in low-volume trade on Tuesday after an encouraging U.S. factory report helped brighten the outlook for metals demand, following improving signals in China and Europe.
But with China’s markets closed this week, trading volumes were thin. Around 500 lots of the LME’s benchmark contracts had turned over on Tuesday.
“With the Golden Week holidays in China, commodities are likely to remain subdued this week,” ANZ said in a report.
Three-month copper on the London Metal Exchange was up 0.3 percent at $4,831.50 a tonne at 0301 GMT.
Prices in September logged their strongest monthly showing since early 2015, with gains of 5.4 percent and topping out at $4,889 a tonne on Friday, the highest since Aug. 3.
China’s stock market will open again next Monday after the National Day break.
U.S. factories ramped up activity in September, shaking off a one-month contraction in a sign the United States was resisting the downward pull of the sluggish global economy.
That came after an official survey showed activity in China’s manufacturing sector expanded again in September, which may indicate that recent positive momentum can be sustained.
Manufacturing activity in the euro zone also picked up last month as demand increased from both within and outside the currency bloc, driving factories to increase headcount, a survey showed on Monday.
While a housing revival is fuelling demand for metals, China’s authorities, worried about a bubble, are taking action.
Four Chinese cities have announced new restrictions on property purchases as the government tries to cool soaring home prices stoked by property speculators in second- and third-tier cities across the country.
Elsewhere, operations at Freeport McMoRan’s giant Grasberg open pit copper and gold mine in the Indonesian province of Papua have been “impacted by a labour disruption”, a company spokesman said on Monday.
In other metals, rallying lead prices are unlikely to be sustained, with the run higher fuelled by a temporary smelter outage and one player keeping a tight grip on inventories rather than long-term shortages of physical metal, sources said.
Lead slipped by 0.6 percent to $2,085 a tonne.
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
Reporting by Melanie Burton; Editing by Joseph Radford