METALS-Copper hits over two-month low as demand woes linger

(Updates prices) June 27 (Reuters) - Copper futures slipped on Thursday, a firmer dollar and uncertainty over economic recovery in top consumer China pushed prices of the red metal to a more than two-month low. Three-month copper on the London Metal Exchange CMCU3 was down 0.5% at $9,494.50 per metric ton, as of 0701 GMT, its lowest since mid April. After reaching a record high of $11,104.5 on May 20, prices have fallen more than 14% amid sluggish data from China and uncertainty surrounding U.S. interest rates. China's industrial profit growth slowed sharply last month, according to data, as weak domestic demand crimps overall growth. "We should see a second wave of price increases as we head into the end of the month, more allocation away from expensive U.S. equities and into relative value commodities. Also, there is more Chinese stimulus to be announced," said a metals trader. The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.6% at 77,550 yuan ($10,669.18) a ton. "Inventory levels of copper continue to surge in China, while local premiums remain low, signalling little sign of physical demand to back to euphoric positioning in the West," analysts at TD Securities said in a note dated Wednesday. Chile's Codelco, one of the world's largest copper producers, fell further behind its production target in May, an internal document obtained by Reuters showed. In the broader market, the dollar lingered near an eight-week high against a basket of currencies. A stronger dollar makes greenback-priced commodities less attractive to holders of other currencies. USD/ LME aluminium CMAL3 was trading 0.4% lower at $2,502 a ton, nickel CMNI3 lost 0.2% to $17,025, zinc CMZN3 fell 0.4% to $2,929.50, lead CMPB3 was down 0.1% at $2,191.50, and tin CMSN3 little changed at $31,875. SHFE aluminium SAFcv1 fell 0.3% to 20,180 yuan a ton, nickel SNIcv1 was flat at 134,110 yuan, lead SPBcv1 was up 0.5% at 19,215 yuan, while zinc SZNcv1 climbed 1.5% to 24,120 yuan and tin SSNcv1 firmed 0.2% at 267,030 yuan. ($1 = 7.2687 Chinese yuan) (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips and 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 ))