LONDON, Oct 1 (Reuters) - Copper prices slipped on Monday
after weak manufacturing data from top consumer China caused
nervousness about demand, but falling inventories in London
Metal Exchange approved warehouses helped support sentiment.
Benchmark copper on the London Metal Exchange was
down 0.2 percent at $6,247 a tonne at 0953 GMT.
"There's a tug of war going on between the Chinese data,
which shows manufacturing stalling and copper stocks," a fund
manager at a natural resources fund said. "LME stocks have been
on a downtrend for some time, fallen below 200,000 tonnes.
CHINA: Growth in China's manufacturing sector stalled in
September as both external and domestic demand weakened, two
surveys showed on Sunday, in a sign U.S. tariffs are inflicting
a heavy toll on the economy.
DEMAND: China accounts for nearly half of global demand
estimated at around 24 million tonnes this year.
STOCKS: Copper inventories in LME warehouses at 199,125
tonnes have nearly halved since late March and are at their
lowest since December last year. MCUSTX-TOTAL
WARRANTS: Cancelled warrants -- material earmarked for
delivery -- at more than 50 percent of total LME stock and a
large holding of copper warrants at between 50 and 79 percent
are also worrying for users of the exchange.
SPREADS: Concern about nearby shortages on the LME market
have created a premium for the cash over the three-month
contracts in recent days. MCU0-3
The premium currently at around $3 a tonne rose above $16 a
tonne in September from a discount of more than $40 in August.
ALUMINIUM STOCKS: The market is also concerned about
aluminium stocks on the LME market, which at 987,800 tonnes have
more than halved since January last year and are at their lowest
since early 2008.
ALUMINA: Unionised workers at aluminium producer Alcoa's
Western Australian operations agreed on Friday to end a
strike that lasted more than six weeks after securing better job
security provisions in a new wage agreement.
This has eased concerns about alumina supplies, a key
ingredient for aluminium production. But ongoing output cuts at
a Norsk Hydro alumina refinery in Brazil still mean
potential shortages.
Aluminium was up 0.8 percent at $2,078 a tonne.
ZINC: Operations at Trevali Mining Corp's
Santander zinc mine in Peru have fully resumed after a road
blockade suspended
