MARKETS-METALS (UPDATE 5)
* Weak U.S. economic data still weighing on sentiment
* Background concerns over weak summer demand weigh
(Updates prices, adds comment)
By Maytaal Angel and Rebekah Curtis
LONDON, June 18 (Reuters) - Copper hit a one-week low on Friday as investors overlooked increased risk appetite in the wider markets and remained concerned about demand prospects after weak data from the U.S., the world's largest economy.
Benchmark copper for three-months delivery on the London Metal Exchange traded at $6,376 a tonne at 1355 GMT from a close of $6,446 on Thursday, having earlier hit a one-week low of $6,310.
"The recovery is going to be quite slow in a number of countries," said Daniel Smith, an analyst at Standard Chartered.
"The U.S. will slowly improve but it's not going to be at the pace of growth we were used to in the past," he said, adding that copper was likely to weaken further in coming sessions.
Factory activity growth plunged in the U.S. Mid-Atlantic region in June and U.S. jobless claims rose last week while consumer prices recorded their worst fall in nearly 1-1/2 years in May, data showed this week.
Equity markets, seen by some as a proxy for economic growth, moved higher in Europe.
Copper, however, failed to track these gains. The metal has fallen some 15 percent this year, hit by concerns over Europe's debt crisis, worries over monetary tightening in top consumer China and a stronger dollar.
VULNERABLE
"We believe the (metals) complex remains vulnerable in the coming months as austerity measures in Europe and a slowdown in the Chinese property market may crimp demand," said Deutsche Bank in a report.
"We (also) remain cautious going into the seasonally weak summer slowdown period. We believe that aluminium and zinc are near fair value at current levels but warn investors that they could remain there for several months."
Zinc, used to galvanise steel, fell to a one-week low of $1,722 a tonne and later was at $1,750 from $1,765, while sister metal lead was at $1,740 from $1,764.
LME data, seen by some as a barometer of demand, showed zinc stocks rose 850 tonnes to total 618,025, not far off their highest level in five years.
Tin was at $17,575 a tonne from $17,745, while nickel, an ingredient in stainless steel making, traded at $19,612 from $19,800, having earlier hit a one-week low of $19,250.
A tin smelter in Bangka island, Indonesia's main source of tin, has shut its operation because fluctuating tin prices and tight ore supply have cut margins.
Aluminium hit a one-week low of $1,945 but later traded at $1,963.25 from $1,966. The metal used in transport and packaging has record LME stocks near 4.5 million tonnes, but most of the material is tied up in financing deals.
Also, some analysts now say aluminium prices have fallen low enough to lead to significant production cuts, especially given that power hikes in China are making it even more expensive to produce the light metal.
Metal Prices at 1354 GMT Metal Last Change Percent Move End 2009 Ytd Percent
move COMEX Cu 287.70 -2.85 -0.98 334.65 -14.03 LME Alum 1958.00 -8.00 -0.41 2230.00 -12.20 LME Cu 6370.00 -76.00 -1.18 7375.00 -13.63 LME Lead 1733.00 -31.00 -1.76 2432.00 -28.74 LME Nickel 19550.00 -250.00 -1.26 18525.00 5.53 LME Tin 17475.00 -270.00 -1.52 16950.00 3.10 LME Zinc 1740.00 -25.00 -1.42 2560.00 -32.03 SHFE Alu 14535.00 -45.00 -0.31 17160.00 -15.30 SHFE Cu* 50930.00 -740.00 -1.43 59900.00 -14.97 SHFE Zin 14055.00 -240.00 -1.68 21195.00 -33.69 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
