* China industrial output 6.1 pct versus 6.4 pct
* LME copper inventories rise another 2,625 T
* GRAPHIC-2016 metal returns: link.reuters.com/cag37s
(Updates with closing prices)
By Jan Harvey
LONDON, Oct 19 Copper slipped on Wednesday as
Chinese industrial production data for last month missed
forecasts, although news that major producer BHP Billiton had
put its 2017 copper output guidance under review underpinned
Data released on Wednesday showed China's economy grew 6.7
percent in the third quarter, flat from the previous quarter, as
increased government spending and a property boom offset
stubbornly weak exports. However, September industrial output
grew less than expected.
"GDP data looked okay, but the industrial production was a
bit softer than consensus, coming in at 6.1 for September versus
6.4," Citi analyst David Wilson said. "Also there is news out on
China's own projections of metals consumption, which suggest
that demand growth rates are going to be softer."
"The counter side is that you've had BHP's production news,"
he added. "So it's softer on the China news, but there are
Three-month copper on the London Metal Exchange
closed down 0.2 percent at $4,671 a tonne, after ending the past
two sessions little changed. It held above a one-month low of
$4,623.25 a tonne touched on Friday.
BHP Billiton , the world's biggest
diversified miner, said on Wednesday its 2017 copper output
guidance was under review after a power disruption this month at
the Olympic Dam mine.
The Chinese government said in the latest update of its
five-year industry plan that China's base metals consumption is
set to slow over the next four years.
In a statement released late on Tuesday, China's Ministry of
Industry and Information Technology (MIIT) said it would limit
new production capacity expansions in the copper, aluminium,
zinc and lead sectors.
Copper inventories in LME-registered warehouses MCU-STOCKS
rose another 2,625 tonnes on Tuesday as they continued to
recover from last week's five-week low.
"LME copper stocks rose again today and have had builds in
three out of the last four sessions, which could indicate that
global demand may be starting to soften," Hightower said in a
Among other metals, nickel closed down 1 percent at
$10,310 a tonne, aluminium 0.6 percent lower at
$1,631.50 a tonne, and zinc at $2,308 a tonne, up 1
Lead was untraded at the close, but was last bid up
1.2 percent at $1,997 a tonne. Tin was the biggest
gainer of the day, closing up 1.5 percent at $19,925 a tonne.
Output from the Man Maw tin mine in Myanmar, which has
disrupted the global market in the metal, is falling sharply and
deposits could be depleted in "two to three years", senior mine
officials told Reuters.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
(Additional reporting by Melanie Burton in Melbourne; Editing
by Mark Potter and David Evans)