Credit: REUTERS/China Daily CDICAug 31 (Reuters) - Shanghai copper prices were set for their fifth straight monthly gain on Monday, the longest monthly winning streak in 11 years, on a strong rebound of the coronavirus-hit Chinese economy.
Manufacturing activities in China, the world's top consumer of copper, have been expanding every month since March, following a record contraction in February due to the outbreak.
Strong construction and infrastructure activities, buoyed by the Chinese government's stimulus programmes as well as a recovery in domestic consumption have fuelled copper demand in the world's second biggest economy.
The most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.6% to 52,040 yuan ($7,600.19) a tonne at 0320 GMT, up 0.7% on a monthly basis and is on track for its longest monthly winning streak since August 2009.
The London Metal Exchange was closed for a public holiday on Monday. Its benchmark three-month copper contract CMCU3 ended the month of August on Friday with a 4% gain, also the fifth straight month of increase.
FUNDAMENTALS
* China's factory activity grew at a slower pace in August as floods across southwestern China disrupted production, but the services sector expanded at a solid rate in a boost to the economy as it continues to recover from the coronavirus shock.
* ShFE nickel SNIcv1 hit its highest since Nov. 15 at 121,550 yuan a tonne and was on track for its strongest monthly gain in a year.
* For the top stories in metals and other news, click
TOP/MTL or MET/L MARKETS NEWS
* Asian shares notched a 29-month high as investors wagered monetary and fiscal policies globally would stay super stimulatory, while an upbeat reading on China's service sector augured well for continued recovery there. MKTS/GLOB DATA/EVENTS (GMT)
1200 Germany CPI, HICP Prelim YY Aug
1200 India GDP Quarterly YY Q1
($1 = 6.8472 yuan)
(Reporting by Mai Nguyen; Editing by Amy Caren Daniel)
((mai.nguyen@thomsonreuters.com; +6568703518; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
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