LONDON, July 13 (Reuters) - Copper fell to a one-week low before edging up on Tuesday as weaker Chinese equities stoked concerns about slowing economic growth in the top metals consumer.
By 0936 GMT, copper for three-month delivery CMCU3 on the London Metal Exchange traded at $6,614 a tonne from $6,630 at the close on Monday and compared with a session low at $6,560.
"The Chinese import numbers for metal weren't quite as good as some people had hoped," said Daniel Smith, analyst Standard Chartered. "People were also looking for a bit of rebound in the (Chinese) property market and the government might ease back in some of its restrictions -- so that hope has faded."
The Shanghai Composite .SSEC fell 1.3 percent, as government agencies denied rumours they would relax property market restrictions after the first fall in nationwide house prices since February 2009. [ID:nTOE66C004] [ID:nTOE66B03G]
On Monday, China reported a drop in copper imports for the third straight month in June. [ID:nTOE669009] [ID:nTOE66900C]
China is the world's top metals consumer and partly responsible for copper, which is used in power and construction, rising 140 percent last year.
In other markets, the U.S. currency was steady after German ZEW institute's July headline index came in lower than expected, making metals priced in dollars more expensive for holders of other currencies. [USD/] [ID:nDEP003342]
Moody's also downgraded the sovereign debt rating of euro zone member Portugal by two notches, signalling continued woes for weaker economies in the single-currency zone. [ID:nWLA8184]
INVENTORIES SLIDE
Helping to cap metal losses, the trend of falling LME inventories gathered pace, with copper stocks down 2,700 tonnes to 432,550 tonnes. Stocks for the red metal hit 555,075 tonnes in mid-February, its highest level since October 2003.
A recent rise in cancelled warrants -- material earmarked for delivery -- has helped boost sentiment. Copper cancelled warrants are at 27,175 according to the latest LME data, up from below 15,000 in mid-April.
For an analysis on LME inventories, click: [ID:nLDE65R13X]
Aluminium CMAL3 traded at $1,966.25 versus $1,972. LME stocks for the metal, used in transport and packaging, eased 6,375 tonnes to a one year low at 4.38 million tonnes.
There was little impact on prices from Alcoa Inc (AA.N), the largest U.S. aluminium producer, which posted a stronger-than-expected second-quarter profit on Monday and raised its estimate for global aluminium consumption. [ID:nN12206110]
"With aluminium, the story is that prices at the moment are below marginal costs," said Eugen Weinberg, an analyst at Commerzbank. "These prices in the longer term are not sustainable and will result in more smelter closures."
Steel-making ingredient nickel CMNI3 traded at $19,250 from $19,200 while battery material lead CMPB3 was at $1,785.25 from $1,784.50.
Investors are also keeping close tabs on the lead market, with LME data showing a dominant position controlling between 50-80 percent of cash warrants. [LME/WC]
Zinc CMZN3 traded at $1,836 a tonne from $1,855.50 and tin CMSN3 was at $1,836 from $17,525.
Metal Prices at 0939 GMT Metal Last Change Pct Move End 2009 Ytd Pct
move COMEX Cu 299.00 -1.40 -0.47 334.65 -10.65 LME Alum 1961.00 -11.00 -0.56 2230.00 -12.06 LME Cu 6603.00 -27.00 -0.41 7375.00 -10.47 LME Lead 1780.00 -4.50 -0.25 2432.00 -26.81 LME Nickel 19200.00 0.00 +0.00 18525.00 3.64 LME Tin 17475.00 -50.00 -0.29 16950.00 3.10 LME Zinc 1830.00 -25.50 -1.37 2560.00 -28.52 SHFE Alu 14730.00 -85.00 -0.57 17160.00 -14.16 SHFE Cu* 52560.00 -660.00 -1.24 59900.00 -12.25 SHFE Zin 14835.00 -300.00 -1.98 21195.00 -30.01 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
