METALS-Copper steady, fund buying offsets weak U.S. data

* Copper inventories jump, demand worries intensify

* U.S. employers cut more-than-expected 190,000 jobs

* Bargain hunting by funds puts floor under prices

(Recasts, updates prices, adds detail)

By Maytaal Angel and Michael Taylor

LONDON, Nov 6 (Reuters) - Copper was steady on Friday as
bargain hunting by funds offset demand worries linked to worse
than expected employment data in the United States, the world's
largest economy.

Copper for three-month delivery MCU3 on the London Metal
Exchange traded at $6,555 a tonne at 1450 GMT from $6,530 at the
close on Thursday, and compared with a session low of $6,440.50.

The Labor Department said on Friday U.S employers cut a
more-than-expected 190,000 jobs last month, taking the
unemployment rate to 10.2 percent, the highest in 26-1/2 years.
[ID:nN06178752]

The dollar initially rose against the euro after the data,
making dollar-priced metals more expensive for non-U.S.
investors. It later gave back all of it gains. [FRX/]

"Copper has been hit by a double whammy - one a weak economy
meaning weak demand, and secondly a strengthening dollar," said
Calyon analyst Robin Bhar.

"But it may be viewed as a buying opportunity by investors
who think if the economy is weak, the Fed has to keep rates low
and that will mean overall a weak dollar."
Earlier this session, copper benefitted from data showing
German manufacturing orders rose in September on firmer foreign
demand. [ID:nL5533743]

Also boosting economic sentiment was an improving outlook
from the Organisation for Economic Co-operation and Development.
[ID:nL6415644]

"Both German manufacturing orders data and the OECD Leading
Indicator data released today support the recovery thesis," said
David Thurtell, an analyst at Citigroup. "Although metal prices
have priced the recovery in to a large extent."

Copper prices have more than doubled this year, driven by
strong investment interest, a weak dollar and record imports
from China, the world's largest industrial metals consumer.

STOCKS SHADOW

LME copper stocks continue to rise, however, indicating
demand has yet to recover outside China. Latest data showed
stocks rose 5,750 tonnes to total 385,575 -- their highest since
early May.

Copper stocks in warehouses monitored by the Shanghai
Futures Exchange rose 1 percent from a week earlier to 104,275
tonnes, the highest since late April, 2004.[ID:nSHA221465]
"Fundamentals remain uncertain," said Francois Lauras,
credit analyst at Moody's. "Demand has been supported by China
but ... the Western economies haven't really picked up."

Aluminium MAL3 was flat at $1,925. LME stocks of the
metal, used in transport and packaging, eased 3,275 tonnes but
remained near record levels at 4.54 million tonnes.

For graphics detailing global metals stocks, click:
here
here
here

Steel-making ingredient nickel MNI3 traded at $17,910 from
$17,760 while zinc MZN3, used to galvanise steel, traded at
$2,197 from $2,219.

In industry news, Tata Steel Ltd (TISC.BO), the world's No.
8 steelmaker by output, said steel sales at its Indian
operations rose 38 percent in October from a year earlier.
[ID:nDEL276973]

Elsewhere, battery material lead MPB3 was at $2,320 from
$2,340, and tin MSN3 was at $14,775 from $14,950.

Metal Prices at 1450 GMT
Metal Last Change Pct Move End 2008 Ytd Pct

move
COMEX Cu 292.00 -3.05 -1.03 139.50 109.32
LME Alum 1915.00 -10.00 -0.52 1535.00 24.76
LME Cu 6540.00 10.00 +0.15 3060.00 113.73
LME Lead 2325.00 -15.00 -0.64 999.00 132.73
LME Nickel 17850.00 90.00 +0.51 11700.00 52.56
LME Tin 14775.00 -225.00 -1.50 10700.00 38.08
LME Zinc 2195.00 -24.00 -1.08 1208.00 81.71
SHFE Alu 15205.00 15.00 +0.10 11540.00 31.76
SHFE Cu* 51140.00 430.00 +0.85 23840.00 114.51
SHFE Zin 16885.00 40.00 +0.24 10120.00 66.85
** 1st contract month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07

(Editing by xxx)