* Economies not out of the woods yet * Trade flows could undermine Asian demand * Coming up: U.S. July retail sales at 1230 GMT By Pratima Desai LONDON, Aug 12 (Reuters) - Copper steadied on Friday as prospects for stronger demand from top consumer China helped sustain prices, while a gloomy outlook for global economic growth and demand capped gains. Benchmark copper on the London Metal Exchange was trading at $8,879 a tonne at 0911 from $8,881 at the close on Thursday. Earlier this week the metal used in power and construction hit $8,446.25 a tonne, its lowest since early December last year, as the debt crisis in the euro zone escalated. The resulting turbulence in financial markets has led to worries about the ripple effect into the real economy and reinforced fears of weaker demand growth for industrial metals. "Any optimism is premature, we are not out of the woods yet, the economic path from now on is unclear," said Eugen Weinberg, commodities analyst at Commerzbank. "We've seen some bargain hunting, probably from the Chinese." China accounts for nearly 40 percent of global copper demand estimated at around 19 million tonnes this year. Its absence from the international market has for months weighed on prices. One school of thought expects the country's consumers having used up their stocks will soon be back buying. They will be helped by a stronger yuan against the dollar. A weaker U.S. currency makes metals priced in dollars cheaper for holders of other currencies. "A stronger (yuan) gives China more purchasing power," a LME trader said, adding that he expected trading to be subdued today after the rollercoaster ride of recent days. SIGNIFICANT SOURCE Others however disagree and cite slowing manufacturing activity in China due to tighter monetary policy to rein in inflation as a reason for consumers to stay away. Lower-than-expected lending numbers from Chinese banks lend credence to the idea that the pace of Chinese growth is losing speed. Also a concern for copper bulls are trade flows between the Western world and Asia. Any deterioration of economic health in the United States and Europe is likely to be felt in their imports of goods from China. "Asia is a significant source of demand for metals, more sluggish growth in developed economies is likely to impact metals markets via large trade linkages with the US and Europe," National Australia Bank said in a note. "Nevertheless, current economic indicators for Asia point to continued demand growth, although activity has slowed." Aluminium was trading at $2,406 a tonne from $2,413 at the close on Thursday, zinc at $2,188 from $2,186 and lead at $2,384 from $2,385. Nickel was at $21,515 from $21,600, while tin bucked the general trend by rising to $24,100 a tonne from $23,605 on Thursday on worries about restricted supplies from Indonesia, the world's largest exporter. Indonesia said it will impose a new "royalty" charge on all tin shipments and only allow the export of refined tin. Metal Prices at 0848 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2010 Ytd Pct move COMEX Cu 401.40 0.55 +0.14 444.70 -9.74 LME Alum 2427.00 14.00 +0.58 2470.00 -1.74 LME Cu 8881.00 0.00 +0.00 9600.00 -7.49 LME Lead 2382.00 -3.00 -0.13 2550.00 -6.59 LME Nickel 21550.00 -50.00 -0.23 24750.00 -12.93 LME Tin 23605.00 0.00 +0.00 26900.00 -12.25 LME Zinc 2186.00 0.00 +0.00 2454.00 -10.92 SHFE Alu 17440.00 -195.00 -1.11 16840.00 3.56 SHFE Cu* 66460.00 -250.00 -0.37 71850.00 -7.50 SHFE Zin 16845.00 65.00 +0.39 19475.00 -13.50 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Pratima Desai; Editing by Alison Birrane)

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