* Uncertainty about Greek default stokes recession fears * Copper cancelled warrants hit highest since June 09 * Coming up: U.S. Aug factory orders at 1400 GMT By Harpreet Bhal LONDON, Oct 4 (Reuters) - Copper fell for a fifth day on Tuesday, as the euro zone debt crisis and the possibility of global recession prompted worries about the outlook for industrial metals demand. Benchmark copper on the London Metal Exchange (LME) traded at $6,815 in official rings, down from Monday's close of $6,990. Earlier in the session the metal used in power and construction fell to a low of $6,712 a tonne. Highlighting the cautious outlook, Goldman Sachs cut its 2012 price forecasts for copper to $9,200 a tonne from $10,790, and cut its Brent crude estimates to $120 from $130 a barrel, after its economists cut their outlook for 2012 global GDP growth. In a reflection of risk aversion in financial markets, European shares fell sharply, while world stocks plunged to a fresh 15-month low. The dollar rose to its highest in nearly nine months against a currency basket A stronger dollar makes commodities priced in the U.S. unit more expensive for holders of other currencies. "The focus continues to be on the situation in Europe. Potential demand from places such as China is hanging on what happens with Europe and people are trying to work out how bad the situation can get," said Nic Brown, head of commodities research at Natixis. Euro zone finance ministers are reviewing the size of the private sector's involvement in a second international bailout package for Greece, while an agreement to push back the next aid tranche for Athens until mid-November heightened investor concerns over the threat of default. ROCKY RIDE Copper fell to its lowest level since July 2010 on Monday, after Greece admitted it would miss its deficit target. The metal lost more than 25 percent in volatile trade in September on global recession fears. "With news flows driving market sentiment, commodities will be in for a rocky ride this week. Although with China on holidays, lighter volumes could also mean greater choppiness," ANZ analysts said in a note. Financial markets in China are shut this week for an extended National Day holiday. Reflecting some tentative signs of a pick-up in demand for copper, LME data showed the ratio of copper cancelled warrants to total stocks jumped 12.61 percent, its highest level since June 2009. "There is some opportunistic restocking demand coming out of China and these numbers tell you it's happening. But it's not as enthusiastic as it might have been if circumstances were different ," Brown said. Looking at longer-term fundamentals for copper, the global market for refined copper is seen in a 250,000 tonne production deficit in 2012, the International Copper Study Group (ICSG) said on Tuesday. In other metals, aluminium traded at $2,170 a tonne in official rings, from $2,203 on Monday's close. Demand for aluminium is slowing but not dramatically so, Gordon Hamilton, who is vice president, metal management sales and marketing at Rio Tinto Alcan , said. Zinc was at $1,857 a tonne from a close of $1,893 on Monday. Lead was untraded in official rings, but bid at $1,920 a tonne from a close of $1,961 while tin was also untraded in official rings but bid at $20,300 from $20,500. Nickel reversed Monday's gains to slip to trade at $18,400 a tonne from a close of $19,025 a tonne. Metal Prices at 1215 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 305.40 -9.15 -2.91 444.70 -31.32 LME Alum 2175.75 -27.25 -1.24 2470.00 -11.91 LME Cu 6800.75 -189.25 -2.71 9600.00 -29.16 LME Lead 1934.00 -27.00 -1.38 2550.00 -24.16 LME Nickel 18399.00 -626.00 -3.29 24750.00 -25.66 LME Tin 20101.00 -399.00 -1.95 26900.00 -25.28 LME Zinc 1864.00 -29.00 -1.53 2454.00 -24.04 SHFE Alu 16640.00 165.00 +1.00 16840.00 -1.19 SHFE Cu* 54790.00 2190.00 +4.16 71850.00 -23.74 SHFE Zin 15400.00 715.00 +4.87 19475.00 -20.92 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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