RTRS: METALS-Copper rises to two-month high on China data
* China's factory output rises 9.7 pct in July
* Fate of U.S. Fed's bond-buying still in focus
* Dollar near two-month lows on Fed uncertainty
By Susan Thomas
LONDON, Aug 9 (Reuters) - Copper rose to its highest in two months on Friday after upbeat Chinese factory data added to signs of steadying growth in the world's top consumer of metals.
A run of upbeat economic numbers from China in the past two days has eased concerns over a slowdown there, which could have derailed growth underway in the United States and hopes of a European recovery, and given some investors reasons to buy.
The latest data showed factory output in July rose 9.7 percent, beating forecasts, and retail sales grew 13.2 percent while inflation held steady. That added to trade figures on Thursday showing exports from the world's second-largest economy running at a surprisingly strong pace.
Three-month copper on the London Metal Exchange was at $7,210 a tonne in official rings, after hitting its highest since June 11 at $7,221.75. It closed at $7,185 on Thursday.
"We have been arguing that people were too pessimistic about China. Demand growth for copper, aluminium and steel is not too bad," Standard Chartered analyst Dan Smith said.
China's imports of unwrought copper and copper products rose 8.1 percent to 410,680 tonnes in July.
"The numbers out of China suggest that things are getting better ... Base metals are getting a good lead with that and if we can maintain these levels we could be in for a good run," said Jonathan Barratt, chief executive of commodity research firm Barratt's Bulletin.
The most-traded November copper contract on the Shanghai Futures Exchange climbed 3.6 percent to 51,800 yuan ($8,500) a tonne.
Market talk about when the U.S. Federal Reserve will start cutting back on its bond-buying programme is still simmering in the background. The uncertainty has subdued the dollar, which is near its weakest level in nearly two months against a basket of other major currencies.
This helped underpin the copper price, because a weaker dollar makes metals cheaper for holders of other currencies.
LME aluminium was $1,866.50 a tonne in rings from $1,840 at the close on Thursday, zinc was $1,945 from $1,895, lead was $2,161 from $2,139, tin was $22,100 from $21,700 and nickel was $14,480 from $14,330.
