Copper slips on China demand worries

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    Copper prices slid on Thursday, as worries about slowing demand growth in China outweighed falling stocks and output cuts.

    Benchmark copper on the London Metal Exchange closed at $US5,135 a tonne, losing one per cent as fund selling picked up following the end of a week-long holiday in China.

    Prices were weighed down by renewed concerns about demand growth in China, which accounts for nearly half of global copper consumption.

    The impact of the country's economic slowdown was highlighted by data showing German exports for August marked their sharpest fall since the global financial crisis. China and other emerging economies are major export markets for Germany.

    The data, which followed soft figures for German factory orders and industrial production this week, deepened investor concerns about demand and prompted funds to sell.

    "Anything that supports the view that demand conditions in China are in a poor place and potentially deteriorating is certainly a negative factor for base metal prices," said Nicholas Snowdon, metals analyst at Standard Chartered.

    Market sentiment took a further hit when Canaccord Genuity cut its target stock price for mining giant Glencore citing a lower commodity price outlook.

    But copper is expected to recover some losses, as shrinking inventories and planned output reductions cut global supply.

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