MARKETS-METALS (UPDATE 3)
* Euro, other major currencies, slip versus dollar
* Chinese output of base metals rises
* Coming Up: U.S. consumer confidence data at 1400 GMT
(Adds comment, updates prices, changes dateline from SINGAPORE)
By Rebekah Curtis
LONDON, May 11 (Reuters) - Copper fell more than 2 percent on Tuesday as euphoria faded over a trillion dollar plan to prevent a European sovereign debt meltdown, and the longer-term demand outlook in Europe and China worried investors.
Also pressuring metals, the euro and other major currencies fell against the dollar, making dollar-priced metals costlier for non-U.S. investors.
Copper for three-month's delivery on the London Metal Exchange traded at $6,960 at 0937 GMT from $7,120 on Monday, when the metal used in power and construction rose $180 and equities surged.
Copper fell to as low as $6,632.75 last week, its weakest since mid February, on concerns that debt problems in Greece could spread to other countries and as equities skidded.
"The markets are being a bit cynical and rightly so," Alex Heath, head of base metals at London's RBC Capital Markets, said of the rescue package for Greece.
"There is an awful lot of hard work and belt-tightening to be done," he added. "The markets have factored in a recovery that hasn't been achieved yet."
EYES ON CHINA
In China, output of base metals continued strongly in April. Copper rose 15 percent versus a year ago to 380,000 tonnes while output of aluminium vaulted 57 percent to 1.37 million tonnes.
But investors are concerned that demand from China could soften as the world's top consumer of base metals looks set to take steps to cool down its red-hot growth.
"There's a great concern that China is slowing down and confidence in metals is going to continue to erode as the (northern hemisphere) summer wears on," Heath said.
Adding to uncertainty, China signalled that it was ready to let the yuan move more freely when it said it would manage the currency "with reference to a basket of currencies", a central bank adviser said on Tuesday.
Aluminium was at $2,070 from $2,144. The metal used in transport and packaging rose 3.5 percent on Monday, its strongest daily performance since Feb. 16.
Among other industrial metals, zinc was at $2,060 from $2,139 and battery material lead was at $2,026.75 from $2,108. Lead earlier fell about 5 percent to a session low of $2,007. Tin traded at $17,700 from $17,750 and nickel was at $22,045 from $23,000.
"Sentiment is fickle," Barclays Capital said in a note. "There are still widespread concerns of euro area sovereign debt contagion, which could still undermine prices."
Later in the session, investors will eye U.S. consumer confidence data, due at 1400 GMT.
Metal Prices at 0940 GMT Metal Last Change Percent Move End 2009 Ytd Percent
move COMEX Cu 313.80 -7.70 -2.40 332.75 -5.69 LME Alum 2065.00 -79.00 -3.68 2230.00 -7.40 LME Cu 6957.00 -163.00 -2.29 7375.00 -5.67 LME Lead 2015.00 -27.00 -1.32 2432.00 -17.15 LME Nickel 22040.00 -960.00 -4.17 18525.00 18.97 LME Tin 17575.00 -175.00 -0.99 16950.00 3.69 LME Zinc 2052.00 -87.00 -4.07 2560.00 -19.84 SHFE Alu 15670.00 -50.00 -0.32 17160.00 -8.68 SHFE Cu* 55710.00 -910.00 -1.61 59900.00 -6.99 SHFE Zin 16550.00 -430.00 -2.53 21195.00 -21.92 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Sue Thomas)
