METALS-Copper falls 1 pct on demand, econ worries

SHANGHAI, July 6 (Reuters) - Shanghai and London copper
prices fell more than one percent on Monday, extending losses
from last week on worries over low demand during the summer
lull, and as investors remained sceptical about a quick
recovery in the global economy.

FUNDAMENTALS

* Shanghai's benchmark third-month copper futures SCFc3
fell 1.4 percent to 39,310 yuan a tonne by 0101 GMT, after
falling 1.3 percent last week. The most-active Shanghai copper
contract for October delivery SCFV9 fell 1 percent to 39,350
yuan a tonne.

* Copper for three-month delivery on the London Metal
Exchange MCU3 shed $55 to $4,945 a tonne, extending a 1
percent loss from last week.

* Dampening sentiment, LME's copper inventories rose 4,050
tonnes to 268,275 tonnes on Friday, and the ratio of cancelled
warrants -- material tagged for delivery -- stood at 5 percent.

* Morgan Stanley (MS.N: Quote, Profile, Research) raised its 2009 copper price
forecast by 48 percent, partly because of a strong recovery in
China, the world's largest consumer of the metal used in power
and construction. [ID:nL3597629]

* Japan's economy has begun to stop worsening, and its
financial system in general was becoming calmer, said Masaaki
Shirakawa, Bank of Japan Governor. [ID:nTFD006291]

* LME aluminium stocks rose 3,400 tonnes on Friday to a
record high of 4.4 million tonnes.

* LME aluminium MAL3 shed $6 to $1,595 a tonne, and
Shanghai aluminium SAFc3 edged down 0.3 percent to 13,450
yuan a tonne.

MARKET NEWS

* The U.S. dollar inched up against the euro on Monday,
after weak U.S. job data last week raised doubts about a speedy
recovery in the global economy. [USD/]

DATA/EVENTS

* The following data is expected on Monday:

- Japan coincident, leading indicators for May. (0500 GMT)

- Eurogroup finance ministers meeting in Brussels. (N/A)

- Euro zone July sentix index. (0830 GMT)

- U.S. ISM non-manufacturing for June. (1400 GMT)

- U.S. employment index for June. (1400 GMT)

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PRICES
Base metals prices at 0101 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI
LME copper $4,945.00 -$55.00 -1.10% -1.79% $4,975
60.0
LME alum $1,595.00 -$6.00 -0.37% -2.74% $1,583
60.3
LME zinc $1,550.00 -$15.00 -0.96% -0.64% $1,566
45.3
ShFE copper 39,310 -550 -1.38% -2.19% 39,502
43.6
ShFE alum 13,450 -40 -0.30% -0.11% 13,257
55.2
ShFE zinc 13,330 -50 -0.37% -0.52% 13,309
47.2
Currencies
Euro/dlr $1.397 $0.002 +0.11% +0.06%
(Reporting by Rujun Shen and Jacqueline Wong; Editing by Ben
Tan)