METALS-Base metals trend lower as market trims bets on size of Fed rate cut

(Updates prices) BEIJING, Sept 2 (Reuters) - Most base metals begun September on a weaker note on Monday, as the market trimmed bets about an aggressive policy easing in the U.S., and China's manufacturing data increased demand concerns. Three-month copper on the London Metal Exchange CMCU3 was down 0.3% at $9,212 per metric ton by 0716 GMT, after posting a slight gain in August, with rising prospect of a September rate cut. The most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 slid 0.5% to 73,610 yuan ($10,362.06) a ton. Trading and sentiment are largely dominated by U.S. data, said Guangzhou Futures analysts. Data showed on Friday upbeat spending figures in the world's top economy, leading markets to trim the chance of a half-point easing from the Federal Reserve. That boosted the dollar, which was hovering around a two-week top on Monday. A strong dollar makes it more expensive to buy the greenback-priced commodity and hence weighs down metals prices. Crucial for the Fed will be the payrolls report later this week. Also weighing on the market was demand from China. Copper stocks have declined in recent weeks after lowered prices encouraged buying, also with a traditional good autumn season. An official manufacturing survey on Saturday showed China's manufacturing activity sink to a six-month low in August as factory gate prices tumbled and owners struggled for orders, an official manufacturing survey showed on Saturday. Meanwhile, a private sector survey which mostly covers smaller, export-oriented firm, showed the country's manufacturing activity swung back to growth in August as new orders drove production. LME aluminium CMAL3 dropped 1% to $2,423.50 a ton, nickel CMNI3 slid 1.3% to $16,555, zinc CMZN3 moved 1.9% lower to $2,841, tin CMSN3 lost 1.9% at $31,725, and lead CMPB3 decreased 0.3% to $2,046.50. SHFE aluminium SAFcv1 slipped 1% to 19,550 yuan a ton, lead SPBc1 declined 1% to 17,130 yuan, nickel SNIcv1 fell 2.9% to 127,760 yuan, zinc SZNcv1 trimmed 1.7% lower to 23,630 yuan and tin SSNcv1 lost 2.5% to 256,460 yuan. SHFE started trading of lead, nickel, tin and alumina options on Monday. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.1038 Chinese yuan renminbi) (Reporting by Siyi Liu and Mei Mei Chu; Editing by Rashmi Aich) (([email protected];)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))