METALS-Copper falls on demand worries, 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 details)

By Maytaal Angel and Michael Taylor

LONDON, Nov 6 (Reuters) - Copper fell on Friday as demand
worries intensified after 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 ended at $6,490 a tonne 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 U.S. economy is not recovering at the pace everyone
would like it to," said Alex Heath, head of base metals at RBC
Capital Markets. "Fundamentals are begining to weigh on people's
minds, with rising stocks seeping into the market."

The dollar rose against the euro and a basket of currencies
in volatile post-data trade. A stronger dollar makes
dollar-priced metals more expensive for non-U.S. investors.
[USD/]

"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]

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 ended at $1,910 from $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 ended at $17,350 from
$17,760 while zinc MZN3, used to galvanise steel, ended at
$2,174 from $2,219.

In industry news, Tata Steel Ltd (TISC.BO: Quote, Profile, Research), 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 ended at $2,250 from
$2,340, and tin MSN3 at $14,750 from $14,950.

Metal Prices at 1717 GMT
Metal Last Change Pct Move End 2008 Ytd Pct

move
COMEX Cu 295.05 0.00 +0.00 139.50 111.51
LME Alum 1908.00 -17.00 -0.88 1535.00 24.30
LME Cu 6500.00 -30.00 -0.46 3060.00 112.42
LME Lead 2255.00 -85.00 -3.63 999.00 125.73
LME Nickel 17275.00 -485.00 -2.73 11700.00 47.65
LME Tin 14700.00 -300.00 -2.00 10700.00 37.38
LME Zinc 2170.00 -49.00 -2.21 1208.00 79.64
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 William Hardy)