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RTRS: METALS-Copper under pressure after US jobless data
 
By Silvia Antonioli

LONDON, June 2 (Reuters) - Copper remained under pressure on Thursday after U.S. weekly jobless claims fell less than expected, heightening concerns about the world's biggest economy but a weaker dollar prevented further losses.

Benchmark copper on the London Metal Exchange was $9,045 a tonne at 1248 GMT, from $9,102 a tonne at the close on Wednesday. Trading volumes were light due to a religious holiday that closed offices in most European countries.

The metal used in power and construction hit a session low of $9,005, its lowest in a week.

New U.S. claims for unemployment benefits fell last week, but not enough to assuage fears the labour market recovery has taken a step back. The figures do not bode well for Friday's U.S. non-farm payrolls data.

"The data continues to disappoint here," said Sean Incremona, an economist at 4cast Ltd in New York.

"This...points out a trend that isn't really getting better at all. We did see plenty of disappointment yesterday with ADP and ISM, so heading into payrolls it should keep that tone very much intact."

Data released on Wednesday showed U.S. companies hired far fewer workers than expected in May, and output in the manufacturing sector slowed to its lowest level since 2009.

"The market is very apprehensive, and it's waiting for payrolls data on Friday to confirm what has been a softer trend in macro data," said Daniel Major, an analyst at RBS.

Slower-than-expected manufacturing expansion in top metals consumer China and in the euro zone also weighed on sentiment.

"The PMI data for June suggested that the pace of manufacturing is slowing faster than expected in the Western world, although holding up better than anticipated in China if usual seasonality holds," Macquarie said in a note.

"While the drop in leading indicators may cause some concern, we would point out that a more moderate rate of growth is still consistent with stronger pricing for those commodities which are currently in large deficits like copper."

The dollar extended losses against the euro after the jobless claims data, helping to prop up metals prices. A weaker U.S. currency makes dollar-priced commodities more affordable for holders of other currencies.

"A string of negative economic data stopped the (base metals) rally," said an LME ring trader. "If the payrolls data tomorrow is disappointing, we may see copper through $9,000."

LOWER IMPORTS

Inventories of copper on the London Metal Exchange rose by 2,650 tonnes to 473,500 tonnes, the highest in a year, data showed on Thursday.

Inventories have been rising steadily since December, adding to nagging worries about lower imports into top consumer China, which is digging into its stockpiles.

Summer is a seasonally weak period for metals consumption, and a strong rebound in Chinese imports is unlikely in the next two months, but it could pick up at the end of the third quarter and into the fourth quarter, Major said.

Aluminium was $2,651.75 from a last bid at $2,667 on Wednesday and zinc, used in galvanizing steel, was $2,245 from $2,257.

Battery material lead was $2,470 from $2,500 while tin was $27,200 from $27,595 Wednesday's close.

Nickel was $23,015 from $23,250.

Metal Prices at 1307 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2010 Ytd Percent

move COMEX Cu 410.05 -0.60 -0.15 444.70 -7.79 LME Alum 2653.50 -23.50 -0.88 2470.00 7.43 LME Cu 9050.00 -52.00 -0.57 9600.00 -5.73 LME Lead 2476.00 -24.00 -0.96 2550.00 -2.90 LME Nickel 23030.00 -220.00 -0.95 24750.00 -6.95 LME Tin 27445.00 -150.00 -0.54 26900.00 2.03 LME Zinc 2245.00 -12.00 -0.53 2454.00 -8.52 SHFE Alu 16840.00 -10.00 -0.06 16840.00 0.00 SHFE Cu* 67660.00 -650.00 -0.95 71850.00 -5.83 SHFE Zin 17220.00 -20.00 -0.12 19475.00 -11.58 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Sue Thomas; editing by Keiron Henderson)

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