BEIJING, Sept 30 (Reuters) - Prices of copper on Friday were set to register a quarterly drop as macro bearishness outweighed supply tightness, while higher-than-expected China factory data raised hopes of better demand from world's biggest metal consumer.
Benchmark copper price stood at $7,626.50 a tonne by 0835 GMT, having lost 8.4% since June 30, pressured down by dollar strength amid U.S. Federal Reserve's interest rate hikes, and as China grappled with a COVID-19-induced economy.
The most-traded November copper contract on the Shanghai Futures Exchange closed at 61,320 yuan ($8,642.58) a tonne on Friday, down 2.2% quarterly.
China's factory activity unexpectedly expanded in September, returning to growth after two consecutive months of contraction and casting some hopes on demand in the last quarter.
The official manufacturing Purchasing Managers' Index (PMI) edged up to 50.1 in September, from 49.4 in August, data from the National Bureau of Statistics showed.
"The improved data buoyed market confidence," said a Chinese copper tube producer source who anticipated rising demand and tight inventories to remain in the upcoming month.
Copper inventories in warehouses monitored by ShFE fell to 30,459 tonnes on Friday, the lowest since Jan.21 and down 54.3% from 66,661 tonnes on Jul.1.
Supply concerns of other metals such as aluminium and zinc persisted throughout the third quarter as European producers decided to cut their production on soaring energy costs.
A possible ban of Russian metal including nickel, aluminium and copper to be delivered to LME further exacerbated supply worries.
ShFE aluminium advanced 1.7% to 18,270 yuan a tonne on Friday, nickel was up 2.1% to 184,370 yuan a tonne, zinc held at 23,670 yuan a tonne, while tin lost 1.8% to 177,210 yuan a tonne.
LME aluminium was up 1.4% at $2,228.50 a tonne and zinc rose 3.1% to $3,021 a tonne, while nickel gained 0.9% to $22,550 a tonne.
For the top stories in metals and other news, click or ($1 = 7.0951 Chinese yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Uttaresh.V)
