LONDON: Copper prices slipped on Thursday in volatile trade, hit by a looming slowdown in summer demand and as concerns over a potential Greek debt default dimmed prospects for the euro zone economy and related metals demand. Greece's international creditors will put their final proposal for a cash-for-reform deal to euro zone finance ministers for approval on Thursday after Athens let a deadline pass. Elsewhere, daily data from the London Metal Exchange (LME) showed copper stocks continuing their downtrend, falling to 309,275 tonnes - their lowest since early March. The drawdowns, however, were not enough to help copper. "In terms of inventory drawdown we've heard from our industry sources that it is a function of stocks reshuffling instead of underlying demand," said Xiao Fu, head of commodity market strategy at Bank of China International. "Over the summer we're cautious on the copper price outlook because we haven't seen a meaningful recovery in Chinese demand. There's a potential for prices to improve modestly towards the fourth quarter." China is the world's top copper user, accounting for around 45 percent of demand. Three-month copper on the LME traded down 0.1 percent at $5,735 a tonne in official midday rings, erasing overnight gains. Prices have been on a downtrend since mid-May, hitting a three-month low on Monday, mostly on worries over lacklustre Chinese demand and a summer slowdown. Also weighing on copper, the world No.1 producer, Codelco, will officially open its newest mine Ministro Hales in the coming months, after fixing a problematic production unit. Nickel failed to trade in official rings and was bid down 1.3 percent at $12,600 a tonne despite LME data that showed another fall in stocks, leaving them at 458,370 tonnes at last count. UBS has joined ANZ to suggest fundamentals are tightening and prices may improve into next year, given China's jump in imports of nickel products and early signs of a sustained downturn in LME inventories. "Nickel spot of around $5.80 a pound represents good value to us with the price around the 42nd percentile of global mining costs. We forecast a fleeting price rise to $8.25/lb in 2016 H1 ($18,188 a tonne)." Aluminium shed 0.3 percent to $1,711 a tonne in official trading. Other metals failed to trade in official rings. Tin was bid down 2.8 percent at $14,750 a tonne, piercing chart support at $15,000. Zinc was bid down 0.3 percent at $2,037 and lead was bid up 0.2 percent at $1,791.

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