Copper eased 1.5 percent on Tuesday as investors shrugged off China's smaller-than-anticipated interest rate cut, as concerns over demand due to a worsening economic outlook returned. China trimmed interest rates on Monday in a latest step to fend off a deepening economic slowdown, but the cut, the fifth since mid-September, was smaller than many analysts had expected. [ID:nPEK312116] By 1044 GMT, copper for three month delivery "The interest rate cut was expected and it was not a very large cut," said Stephen Briggs, analyst at RBS Global Banking & Markets. "I don't think anybody feels that it's enough to change the outlook for China ... (or) that it has had a great deal of effect." Prices of the metal used in power and construction have fallen about 65 percent since a record high of $8,940 in July. Adding to the metal's woes, world refined copper surplus rose 67 percent in January-September as weak demand in Japan, the European Union and the United States more than offset strong Chinese demand, the International Copper Study Group (ICSG) said. [ID:nSP75519] The group said refined copper surplus rose to 120,000 tonnes in the first nine months of the year, compared with a surplus of 72,000 tonnes in the same period a year earlier. The copper surplus in September stood at 49,000 tonnes. "The move down sort of signals what has been going on in the several previous months," said Michael Khosrowpour, an analyst at Triland metals on copper. "We are seeing a continuation of a trend lower as prices seem to adapt to a global recession." On the copper price going forward, he said things may pick up in the second and third quarter of 2009. "Prices will start coming back ... possibly $5,000 by the end of next year." Aluminium rose to a high of $1,585 but was last at $1,563 from $1,555. The metal used in transport and packaging has come under pressure in recent weeks on news of falling car sales data from auto makers. LME stocks jumped 34,650 tonnes to 2.23 million tonnes -- a reminder of weaker demand for the metal -- and a 14-year high. "Aluminium has managed to keep up despite this increase in stocks which are now really at high levels," said RBS' Briggs. "Cutbacks are beginning to have an effect on the supply under control ... The market is focused more on the cut backs and the implications of production." Hydro Aluminium, the German unit of Norwegian group Norsk Hydro , said on Monday it was cutting aluminium and aluminium product output at its German operations because of falling demand. Nickel was at $10,225 from $10,300 at the close on Monday, lead at $918 from $908 and zinc at $1,181 from $1,180. Tin drifted $5 lower to $10,300. Metal Prices at 1049 GMT Metal Last Change Pct Move End 2007 Ytd Pct move LME Cu 2930.00 -30.00 -1.01 6670.00 -56.07 SHFE Cu* 22890.00 -460.00 -1.97 56880.00 -59.76 LME Alum 1558.00 0.00 +0.00 2403.00 -35.16 SHFE Alu* 10930.00 -60.00 -0.55 18180.00 -39.88 COMEX Cu** 130.60 -1.10 -0.84 303.05 -56.90 LME Zinc 1175.00 -5.00 -0.42 2370.00 -50.42 SHFE Zinc* 9670.00 -115.00 -1.18 18950.00 -48.97 LME Nick 10100.00 -200.00 -1.94 26350.00 -61.67 LME Lead 913.00 5.00 +0.55 2550.00 -64.20 LME Tin 10150.00 -155.00 -1.50 16400.00 -38.11 ** 1st contract month for COMEX copper * 3rd contact month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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