(Updates with closing prices)By Peter HobsonLONDON, April 30 (Reuters) - Copper prices rose on Tuesdayas investors bet that top consumer China would respond to weakfactory data by implementing fresh stimulus measures.Zinc also gained more than 1 percent as surging premiums forcash metal on the London Metal Exchange (LME) pointed to ashortage of nearby supply.
Benchmark LME copper on the LME closed 0.3 percentup at $6,415 a tonne.
The metal used in power and construction has gained about 8percent this year on hopes that China can prevent a sharpeconomic slowdown, though prices have been trapped around $6,500since late February.
"It is more likely (after the Chinese factory data) that wewill see further stimulus measures," said Commerzbank analystDaniel Briesemann.
He said a likely trade deal between the United States andChina would lift copper, but predicted prices would return to$6,500 a tonne at the end of the year.Further support came from a weaker U.S. dollar, makingmetals cheaper for buyers with other currencies.
CHINA FACTORIES: Two surveys on Tuesday showed a loss ofmomentum in Chinese factory activity in April.The unexpected slowdown in growth followed upbeat data inMarch, which had raised hopes that the world's largest consumerof metals was getting back on firmer footing.
TRADE WAR: U.S. Treasury Secretary Steven Mnuchin said hehoped to make "substantial progress" with Chinese negotiators inthe next two rounds of trade talks. WESTERN ECONOMIES: The euro zone and United States reportedpositive economic data.ZINC SPREAD: The premium for cash zinc over the three-monthcontract on the LME has leapt to $134.50, its highestsince 1997, suggesting a shortage of immediately availablemetal.
ZINC STOCKS: However, zinc stocks in LME-registeredwarehouses have risen to 81,325 tonnes fromrecord lows around 50,000 tonnes earlier this month.
Stockpiles in Shanghai Futures Exchange (ShFE) warehouses,at 72,090 tonnes, are down from about 124,000 tonnes in Marchbut up sharply from the start of the year. ZINC PRICE: LME zinc ended 1.2 percent up at $2,825.50 atonne, near a 9-1/2 month high of $2,958 reached on April 1.
GLENCORE: Glencore cut its target for 2019 copperoutput to about 1,460,000 tonnes from around 1,540,000 tonnes. CHILE: Copper output in Chile fell 3.5 percent to 479,080tonnes in March. CHALCO: China's Chalcosaid thatfirst-quarter aluminium output fell to 950,000 tonnes from 1.02million tonnes a year earlier. COLUMN: Aluminium's bull narrative is lost in the shadows,writes Reuters columnist Andy Home. OTHER METALS: LME aluminium finished 1.6 percentdown at $1,798 a tonne, lead fell 2.3 percent to $1,925and tin closed flat at $19,650.
Nickel did not trade in closing rings but was 1.2percent lower at $12,260 at 1619 GMT in electronic trading.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter HobsonAdditional reporting by Mai NguyenEditing by Jon Boyle and David Goodman)