(Updates prices) LONDON, March 1 (Reuters) - Prices of copper and otherindustrial metals rose on Wednesday after data from China, thebiggest metals consumer, showed manufacturing activity rose inFebruary at the fastest pace in more than a decade. Also lifting metals was a fall in the value of the dollar,including against China's yuan, making dollar-priced metals moreaffordable for buyers holding other currencies. U.S. and euro zone factory activity, however, continued tocontract.
Benchmark copper on the London Metal Exchange (LME)was up 1.8% at $9,124 a tonne by 1737 GMT.
Copper reached a seven-month high of $9,550.50 in January onhopes that Chinese demand would rebound after the countryabandoned COVID-19 controls. But prices lost momentum around the Chinese New Year asdemand failed to pick up, metal accumulated in Chinesewarehouses and the dollar strengthened. "Today's number gives me more conviction that China is goingto be a positive force (for demand)," said WisdomTree analystNitesh Shah. He said that copper inventories remain low globally andprices could rise to $10,000 in the coming months, adding thathe was "super bullish" in the long term owing to copper'sincreasing use in power generation and transmission as the worldmoves away from fossil fuels. JPMorgan analysts said: "We remain relatively morerestrained in our demand growth outlook as the drivers ofChina's overall economic rebound this year are moreconsumption-driven rather than metals-intensiveinvestment-driven."
The bank forecast that copper prices would end this year atabout $9,100 a tonne before breaking above $10,000 in 2024 andaveraging $9,850 in 2024. Meanwhile, concerns about global copper supply eased. Freeport Indonesia said it had restored operations at itsGrasberg mine after flooding while a lawyer said a deal wasclose in a dispute between Panama and First Quantum, whichstopped ore processing at its mine in the country. In other metals, LME aluminium was up 2.7% at $2,436a tonne, zinc jumped 4.4% to $3,131, nickel firmed by 0.6% to $24,935, lead was up 1.4% at $2,133and tin gained 1.1% to $25,225. (Reporting by Peter HobsonAdditional reporting by Siyi Liu and Dominique PattonEditing by Shounak Dasgupta and David Goodman)
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