Copper trims losses, but nickel and lead up on weak dollar * Chinese growth concerns cap sentiment * U.S. initial jobless claims due at 1330 GMT (Updates prices to mid-session, adds comment) By Anna Stablum LONDON, Dec 11 (Reuters) - Copper fell 2.3 percent in early trade as economic growth concerns weighed on sentiment, but the metal trimmed losses as the dollar weakened against the euro ahead of U.S. jobless data on Thursday. A softer U.S. currency makes metals cheaper for other currency holders and lead gained 4 percent and aluminium also climbed higher. Nickel rose 5.8 percent on technical buying. London Metal Exchange copper fell to a low at $3,230 a tonne before trading at $3,260 by mid-session against $3,305 on Wednesday, when the metal rose 4.5 percent at one point. "The rise was mainly due to dollar weakness," analyst Eugen Weinberg at Commerzbank said. The euro hit a 6-week high against the dollar on Thursday. Nickel was indicated at $10,725/10,750 after rising 5.8 percent to a high of $10,900 against $10,300 at the close on Wednesday. Technical buying offset a jump in stocks, up 2,424 tonnes to 68,640 -- with LME stocks rising 30 percent so far this year. "Nickel rallied 10 percent yesterday and today it is more of the same -- short-covering after breaking through certain technical levels," said one LME ring dealer. Lead hit a high of $1,045, up 4 percent. It traded at $1,035 in the ring. The metal, widely used in batteries, closed at $1,005 on Wednesday. Traders said they would watch U.S. initial jobless claims due at 1330 GMT as it could affect the dollar and equities. Prices of copper, used in power and construction, have fallen more than 60 percent since a record high of $8,940 in July. Last week it hit $2,991, the lowest since May 2005. "The metals are under pressure and it will get worse before it gets better," Weinberg said. In a report analyst Andrew Keen at Sanford C. Bernstein said: "We believe the worst of the commodity cycle will be experienced in the fourth quarter of 2008 and the first quarter of 2009." As a result of the rapid deterioration in the global economic outlook the research firm cut 2009 copper forecasts to $3,675 a tonne from $4,200 previously. Aluminium was revised down to $2,290 from $3,000, it said. LME aluminium gained $31 to $1,556 despite another hefty rise in stockpiles, which brought the total amount to 1.9 million tonnes -- having doubled since the start of the year. Copper stocks are up over 50 percent in the year to date. Further production cuts had little effect on prices in the short term, but some analysts said the cuts would help build a price floor in zinc, lead, nickel, tin and aluminium. Rio Tinto said it will cut aluminium output in France. FNX Mining said it will suspend its remaining nickel ore production and lay off 307 employees at operations in Canada. CHINA WEAKNESS Demand for exports from China shrank precipitously last month, pointing to an economic slowdown in the world's largest copper consumer. "The signs of economic slowing in China are becoming more visible," said Barclays Capital analyst Yingxi Yu. "We don't think a rally in metals can be sustained in the near term and even though we are seeing a rapid response from producers, it's hard to see prices recover on a sustained basis for the next three to six months." China's economy could grow by 8.0 percent next year, a Reuters poll of economist suggested, down from 9.0 percent in the previous quarterly poll. Tin rose $150 to $12,000/12,005 a tonne, while zinc slid $5 to $1,099 a tonne. Metal Prices at 1312 GMT Metal Last Change Percent Move End 2007 Ytd Percent move LME Cu 3320.00 15.00 +0.45 6670.00 -50.22 SHFE Cu* 25230.00 -70.00 -0.28 56880.00 -55.64 LME Alum 1560.00 35.00 +2.30 2403.00 -35.08 SHFE Alu* 10840.00 110.00 +1.03 18180.00 -40.37 COMEX Cu** 147.00 0.10 +0.07 303.05 -51.49 LME Zinc 1095.00 -9.00 -0.82 2370.00 -53.80 SHFE Zinc* 9240.00 -100.00 -1.07 18950.00 -51.24 LME Nick 10625.00 325.00 +3.16 26350.00 -59.68 LME Lead 1034.00 29.00 +2.89 2550.00 -59.45 LME Tin 12025.00 175.00 +1.48 16400.00 -26.68 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Nick Trevethan in Singapore, editing by Peter Blackburn)

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