NEW YORK, Oct 23 (Reuters) - U.S. copper futures slipped to a new three-year low in early trade on Thursday as concerns about demand prospects in a global economic downturn continued to drive investors out of the market. NOTE: For detailed report, click on [MET/L] * Copper for December delivery HGZ8 was trading down 5.95 cents, or 3.2 percent, at $1.8060 a lb by 10:34 a.m. EDT (1434 GMT) on the New York Mercantile Exchange's COMEX division. * The morning range was from $1.85 to $1.7180 -- the lowest level for a third position contract dating back to October 2005, based on a continuation basis. * Spot October HGV8 shed 8.15 cents, or 4.4 percent, to trade at $1.7695. * COMEX estimated futures volume at 6,205 lots as of 9 a.m. * COMEX copper down nearly 58 percent since the latest move above $4.00 a lb in early July. * The base metals complex is shedding value faster than ever now, as the money flow that drove prices to record highs in mid-year is rushing in the other direction and investors dump "riskier" assets amid growing fears of a global recession - RBC Capital Markets. * Adding to copper's negative tone was the U.S. dollar, which hit a new two-year peak against a basket of currencies as investors sought safety in reserve currencies due to the gloomy economic outlook. [USD] * Copper sell-off directly tied to concerns the global economic slowdown has spread to China, the world's largest metals consumer. * Economic growth in China slowed to 9 percent in the third quarter from over 10 percent in the second, while factory output dropped to a six-year low. [ID:nPEK312415] * Global miner and takeover target Rio Tinto Ltd/plc (RIO.AX: Quote, Profile, Research, Stock Buzz)(RIO.L: Quote, Profile, Research, Stock Buzz) cut its outlook for Chinese economic growth in 2009 to 8-9 percent, but expects commodity prices to bounce back some time next year.[ID:nSYB004553] * China's top integrated copper producer, Jiangxi Copper Corp, has set up an emergency unit to deal with market changes in light of the global financial turmoil, the firm said in a statement. [ID:nHKG40987] * A third of the world's copper smelters could slip into the red in 2009 as they struggle with low fees to turn ore into metal, falling metals prices and a slump in credits for by-products such as sulfuric acid. [ID:nSP32302] * On the supply-side, London Metal Exchange (LME) copper warehouse stocks increased by 1,500 tonnes to 209,250 tonnes -- about 90 percent above the lows for this year in May and amounting to just over four days of global consumption. * COMEX copper stocks rose 811 short tons at 8,578 short tons as of Wednesday. * LME copper for three months delivery MCU3 fell as low as $3,815 a tonne, its lowest level since October 2005, before rebounding slightly to trade at $3,990. (Reporting by Chris Kelly; editing by Jim Marshall)

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