(Updates after U.S. data)
* Copper heading for biggest monthly fall since Oct. '08
* Quarter-end seen prompting volatility
(Updates with official prices)
By Harpreet Bhal
LONDON, Sept 29 (Reuters) - Copper fell on Thursday as worries about a
slowdown in the global economy and uncertainty about whether Greece could avoid
a debt default prompted investors to stay cautious.
Better-than-expected employment and GDP data from the United States helped
copper cut some losses but was not enough to make the metal turn positive.
Benchmark copper on the London Metal Exchange was at $7,120 a tonne
by 1242 GMT, down from $7,250 a tonne at the close on Wednesday.
The metal used in power and construction had earlier slid more than 6
percent to $6,821 a tonne, hovering near a 14-month low of $6,800 hit earlier
this week when panic selling accelerated on fears of a Greek default and the
euro zone crisis.
A German parliamentary approval of new powers for the euro zone's rescue
fund failed to lift investors' sentiment. Meanwhile, international inspectors
were set to return to Greece to decide whether Athens has done enough to secure
new aid vital to avoid bankruptcy.
"There are concerns about the weakness in Europe and how that will impact
growth in emerging markets. Market sentiment with regards to European growth
over the next six months or so has turned very bearish and the concerns are
about the implications on demand for China's exports," said Gayle Berry, analyst
at Barclays Capital.
Further falls in the metal were capped by a weak dollar, which fell against
a basket of currencies . A weaker dollar makes commodities priced in the
U.S. unit more expensive for holders of other currencies.
MONTHLY AND QUARTERLY LOSSES
Trading in base metals markets was expected to be choppy until the end of
the week which marks the end of the month and quarter, with an element of
position squaring and "window dressing" -- an attempt to make investments look
better -- to be expected.
Copper is down about 22 percent so far this month, on track to post its
biggest monthly fall since October 2008 and its steepest quarterly drop since
the fourth quarter of 2008.
"The most likely direction in the short-term is probably lower given
sentiment is still incredibly negative and lots of the question markets remain
unanswered, in particular how the European sovereign debt situation will play
out," Barclays Capital's Berry said.
Aluminium was at $2,230 a tonne , from Wednesday's close of $2,235
a tonne.
"Consumer interest continues to linger in the lower $2,200s and scale down
where we expect fresh activity to come in," Citi analysts said in a note.
Aluminium stocks in LME-monitored warehouses showed a drop of 3,950 tonnes,
according to data from the LME.
Tin was at $20,750 a tonne from $20,550. Tin moved into
backwardation, with premiums for cash at a $4 premium against the three-months.
Zinc was at $1,925.50 from $1,942, lead was $2,012.75 from
$2,008, and nickel was $18,625 from $18,505.
China's southern and central regions, which depend heavily on hydropower,
will face a power supply squeeze this winter due to strong demand growth and low
water storage, the National Energy Administration said on Thursday.
Power rationing has cut into industrial activities such as metal smelting in
some regions and China's power consumption grew at the slowest pace this year in
August, with the consumption increase by heavy industry sinking to single-digits
for the first time since February.
Metal Prices at 1246 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
