UPDATE 1-Codelco cuts 2009 premiums another 4 pct to $72/T

(Adds background, quotes, link to factbox)

SINGAPORE, Jan 6 (Reuters) - Codelco, the world's top copper producer, has cut annual copper premiums for some Chinese buyers by a further 4 percent to $72 a tonne, after initially cutting this year's premium by nearly a third from the 2008 level.

"We have signed at $72, from the previous offer of $75," a source at a trading firm in China said.

The Chilean firm is also offering other inducements to buyers including late price settlement, repurchasing metal and change of delivery port, said a second Chinese source, whose firm has not yet signed with Chile's Codelco for this year's shipments.

"This is a clear reflection that Chinese demand is weaker than expected. It's no surprise that premiums have been cut again to attract buyers and it doesn't look good for the copper market," a Singapore-based trading source said.

No one at Codelco was immediately available for comment.

In November, Codelco slashed term premiums for refined copper to China by 32 percent to $75 a tonne above the London Metal Exchange cash price MCU0, and made similar cuts for customers in Europe.

Copper prices MCU3 fell more than 50 percent in 2008, despite surging to a record high of $8,940 in July, on the softening outlook for global growth.

To see a factbox on Codelco's premiums to China, click on [ID:nSP406436]

"Chinese demand is weakening and the lower surcharge is also expected to be extended to buyers elsewhere. The slump in copper demand is not limited to China, it's global," said Judy Zhu, analyst at Standard Chartered Bank. (Reporting by Nick Trevethan and Polly Yam; Editing by Michael Urquhart)