MARKETS-METALS (UPDATE 5)
* Private hiring in U.S. slows sharply in March
* U.S. stocks, euro, sink in reponse to jobs data
* Concerns over Europe debt, China growth, linger
(Recasts, adds details/quotes, updates prices)
By Michael Taylor and Maytaal Angel
LONDON, June 4 (Reuters) - Copper hit a five month low on Friday after weaker-than-forecast U.S. jobs data fractured confidence already dented this week by worries over Chinese monetary tightening and euro zone debt.
Zinc and tin hit 10-month and 3-month lows, respectively, nickel hit its lowest in nearly 4 months, while lead and aluminium hit their lowest in almost a year.
Benchmark copper for three-month delivery on the London Metal Exchange traded at $6,360 a tonne at 1359 GMT from $6,525 on Thursday, having earlier hit $6,310, its lowest since Feb 5.
U.S. nonfarm payrolls grew at their fastest pace in 10 yearsin May, buoyed by recruitment for the decennial census, but private hiring slowed sharply as businesses opted to increase hours rather than hire new workers.
"The U.S. has been the shining light recently in a base metals market that has been looking at macro concerns in Europe and China, and those concerns have formed a natural cap to prices," said VM Group analyst Carl Firman.
"The U.S. and fundamental aspects in metals like declining stocks have formed a natural floor. Perhaps the floor itself will (now) be lower, the third quarter is quiet anyway because of the summer."
U.S. stock markets, seen by some as a proxy for economic growth, tumbled more than 1 percent at the open on Friday following the jobs data, while the euro hit a more than four-year low versus the dollar.
A weak euro makes metals costly for European investors.
"The fundamental backdrop is still supportive but undefined fears have been taking prices lower...we know of sovereign debt concerns and China slowdown but overall the market has become spooked," said Berry.
Also knocking metals, data this week pointed to a slowdown in the pace of manufacturing activity in China, the world's top metals consumer, as gradual monetary policy tightening took a toll on new orders.
"China's economic growth has shifted into a lower gear following a very strong period in Q4-2009 and Q1-2010," said Standard Chartered in a note. "We expect China to slow over the next six months, but not dramatically."
FUNDAMENTALS IMPROVING
On the plus side, LME copper stocks, which indicate demand trends, fell 1,300 tonnes to 473,000 tonnes -- their lowest level since late December -- and have now fallen from six and a half year highs at 555,075 tonnes hit in mid February.
In other metals traded, aluminium fell to $1,928 versus $1,955, having earlier hit its lowest in almost a year at $1,904. LME stocks for the metal, used in transport and packaging, shed 9,075 tonnes to 4.53 million tonnes.
Zinc plunged more than 5 percent to $1,671 a tonne from $1,740, having earlier hits lowest since late July at $1,646, while tin dropped more than 5 percent to $16,875 from $17,650, having earlier hit its lowest since late February at $16,750.
Steel-making ingredient nickel was at $18,300 from $18,700, having earlier hit a near four-month low of $18,050, while battery material lead dropped to $1,628.75 from $1,645, after earlier hitting a near one year low at $1,605.
On Thursday, lead cancelled warrants -- material earmarked for delivery from warehouses -- were at 14,550 tonnes from 6,975 tonnes the day before. LME lead stocks however, remain at highs not seen since October 2002 at 191,925 tonnes.
"We have seen the cancelled warrants for lead increase over the past few days," said Barclays capital analyst Gayle Berry. "It wouldn't surprise me if we're seeing a pick-up in demand ahead of the summer.
Metal Prices at 1403 GMT Metal Last Change Percent Move End 2009 Ytd Percent
move COMEX Cu 287.00 -7.65 -2.60 334.65 -14.24 LME Alum 1920.00 -35.00 -1.79 2230.00 -13.90 LME Cu 6352.00 -173.00 -2.65 7375.00 -13.87 LME Lead 1622.00 -23.00 -1.40 2432.00 -33.31 LME Nickel 18175.00 -525.00 -2.81 18525.00 -1.89 LME Tin 16825.00 -825.00 -4.67 16950.00 -0.74 LME Zinc 1665.00 -75.00 -4.31 2560.00 -34.96 SHFE Alu 14750.00 -205.00 -1.37 17160.00 -14.04 SHFE Cu* 53000.00 -900.00 -1.67 59900.00 -11.52 SHFE Zin 14365.00 -725.00 -4.80 21195.00 -32.22 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
