SINGAPORE, July 27 (Reuters) - London copper prices rose on
Monday on hopes that the U.S. Congress would soon agree on a
coronavirus relief deal, although gains were capped due to
slowing Chinese demand.
Three-month copper on the London Metal Exchange rose
0.5% to $6,446.50 a tonne by 0703 GMT, while the most-traded
September copper contract on the Shanghai Futures Exchange
tracked overnight losses in London to close 0.4% lower
at 51,600 yuan ($7,373.85) a tonne.
U.S. President Donald Trump's top aides agreed in principle
with Senate Republicans on a $1-trillion coronavirus relief
package, paving the way to negotiate with Democrats.
"This buying (in metals) looks to be related to the U.S.
Senate agreeing in principle to the terms of the coronavirus aid
bill," said Malcolm Freeman, a director at UK broker Kingdom
But analysts have warned about weak demand in China.
"Downstream purchase interest remains weak (in China).
Copper consumers say weak season has arrived," said an analyst
based in China.
Also weighing on prices were U.S.-China tensions and
non-materialisation of potential labour strikes in top copper
Antofagasta's avoided a strike at Zaldivar copper
mine in Chile, while mediation talks at its Centinela mine were
extended in a last-ditch effort to stave off a strike.
* OTHER PRICES: LME aluminium rose 0.2% to $1,702.50
a tonne, nickel advanced 0.6% to $13,735 a tonne. ShFE
nickel jumped 2% to 110,140 yuan a tonne and tin
climbed 2.8% to 146,510 yuan a tonne.
* COPPER: An unprecedented drop in lead demand from the auto
battery sector led to massive surpluses, which is only the tip
of the iceberg, analysts say.
* ALUMINIUM: China's primary aluminium imports in June rose
more than 570% from May.
* For the top stories in metals and other news, click
($1 = 6.9977 yuan)
(Reporting by Mai Nguyen; Editing by Vinay Dwivedi and