METALS-Industrial metals advance as factory data boosts sentiment

(Updates prices)

Nov 3 (Reuters) - Prices of industrial metals edged higher on Tuesday, as robust factory data from the world’s biggest economies boosted sentiment, though trading volume was thin in the hours ahead of the U.S. presidential election.

Three-month copper on the London Metal Exchange rose 0.6% to $6,800 a tonne by 0717 GMT, zinc advanced 0.7% to $2,557 a tonne and nickel increased 0.4% to $15,225 a tonne while aluminium was up 0.4% at $1,873.50 a tonne.

The most-traded December copper contract on the Shanghai Futures Exchange rose 1.5% to 51,800 yuan ($7,737.70) a tonne, while aluminium advanced 0.7% to 14,760 yuan a tonne and zinc climbed 1.4% to 19,950 yuan a tonne.

Robust factory data from top metal consumer China, the United States and euro zone on Monday eased growing concerns about global growth in the face of a resurgent pandemic.

However, trading volume was low as most investors have settled on a pre-election stance, while rising coronavirus cases globally also threatened economic recovery.

Counting of mail-in votes and legal disputes could prolong the declaration of the United States’ next president.

Delays or sudden shifts “in declaring who is winning will create some volatility,” said a Singapore-based metal trader.

“In the next half of this month, data will start to reflect the (new round of) COVID-19 infections. It’s slightly early to sell, but ... a week from now if we’re still here or higher, it is a good chance to scale up selling,” said the trader.


* Chile’s Candelaria copper mine, owned by Canada’s Lundin Mining Corp, said on Monday it had submitted a new contract offer to a striking union in a bid to end a nearly month-long walk-off at the deposit.

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