* China data, company updates buoy sentiment * Copper inventories at lows last seen Nov 2008 * Copper, tin in backwardation (Releads, updates ring prices, adds detail) By Michael Taylor LONDON, July 16 (Reuters) - Copper edged lower on Thursday, as investors remained cautious on demand and economic prospects, despite strong company earnings and robust growth data from China. Copper for three month delivery on the London Metal Exchange fell to $5,230 a tonne from $5,263 at the close on Wednesday and compared with a session low at $5,163. The red metal, used in power and construction, rose to a one-month high of $5,284 a tonne on Wednesday as solid corporate earnings in the U.S. gave investors hope that the worst of the economic downturn may be over. "Prices have risen quite strongly over the past few days," said Gayle Berry, an analyst at Barclays Capital. "Although the Chinese numbers were stronger than expected, I'm not sure they were strong enough." Robust growth data from China, the world's largest copper consumer, capped greater losses after it accelerated to 7.9 percent in April-June from 6.1 percent in the first quarter. "As the economic recovery gathers speed in emerging markets, the demand for base metals will likely continue to improve even if the recovery stalls in the developed markets, given the leverage copper demand has to China and the emerging markets," said Goldman Sachs in a note. Upbeat equities capped further losses, after better-than-expected results from JPMorgan Chase & Co. The U.S. currency turned negative, making metals priced in dollars less expensive for holders of other currencies. On the macro calendar, weekly U.S. jobless claims data at 1230 GMT will be eyed for further economic indicators. Investors were concerned over tightness in the copper market as data showed a dominant position controlling between 50 percent and 80 percent of LME stocks. Analysts said this was partly behind copper moving into backwardation -- a premium of about $8/$9 for LME cash copper over the three-month contract. This compares to a contango of $14.50 on July 8. LME copper inventories shed 225 tonnes to 260,875 tonnes. These low stock levels, combined with favourable supply and demand fundamentals, will benefit copper ahead of most other LME metals, Investec Asset Management said. ALUMINIUM Aluminium rose $5 to $1,660 in LME rings. The metal, used in transport and packaging, has been boosted by Chinese stockpiling efforts in recent weeks but analysts say this is now starting to fade as the summer lull approaches. "(Sentiment) seems positive at the minute," said Michael Khosrowpour, an analyst at Triland Metals on industrial metals. "I'm neutral to slightly bearish over this quarter and bullish for the last quarter ... I would be surprised if we saw some major rallies in July/August." Highlighting concerns over weak fundamentals, LME aluminium stocks remain at record levels above 4.5 million tonnes. In other metals, steel-making ingredient nickel traded at $15,900 from $15,940 while battery material lead was at $1,620 in LME rings versus $1,635. Zinc shed $8 to $1,534 a tonne and tin edged down to a last bid price of $13,025 from $13,300. Worries about nearby supplies of tin have pushed the premium for cash material over the three-month contract to around $180 a tonne from a discount of around $40 a tonne mid-June. Traders also remain concerned about the scale of long positions in the tin market, compared with the amount of available metal in LME warehouses. For latest Reuters polls of industrial metals price forecasts, click on or Metal Prices at 1224 GMT Metal Last Change Percent Move End 2008 Ytd Percent move COMEX Cu 236.65 -1.60 -0.67 139.50 69.64 LME Alum 0.00 -1655.00 -100.00 1535.00 -100.00 LME Cu 5245.00 -18.00 -0.34 3060.00 71.41 LME Lead 1634.00 -1.00 -0.06 999.00 63.56 LME Nickel 15880.00 -60.00 -0.38 11700.00 35.73 LME Tin 13025.00 725.00 +5.89 10700.00 21.73 LME Zinc 1539.00 -3.00 -0.19 1208.00 27.40 SHFE Alu 13515.00 25.00 +0.19 11540.00 17.11 SHFE Cu* 41540.00 200.00 +0.48 23840.00 74.24 SHFE Zin 13240.00 -10.00 -0.08 10120.00 30.83 ** 1st contract 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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