METALS-Copper prices drift lower on softer China data

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Adds official prices, copper output China data)
By Zandi Shabalala
LONDON, Sept 10 (Reuters) - Copper eased on Tuesday as
downbeat factory data from top producer China highlighted the
impact of Beijing's trade conflict with the United States and
reinforced concerns over demand for the metal.
Benchmark copper CMCU3 on the London Metal Exchange (LME)
was bid down 0.8% to $5,765 a tonne after failing to trade in
official rings. The metal, used in power and construction,
touched a more than two-year low of $5,518 on Sept. 3.
"Copper is still drifting on the weak economic indicators in
China and other parts of the world ... still pointing to a
contraction zone that's not helpful to copper prices," said ING
analyst Wenyu Yao.
"Looks like the macro is winning at the moment."
Factory-gate prices in China shrank at the sharpest pace in
three years in August, falling deeper into deflationary
territory and reinforcing the urgency for Beijing to step up
economic stimulus as the trade war intensifies. Customs data on Sunday showed China's unwrought copper
imports fell in August after a bounce the previous month.
CHINA: Refined copper cathode production by major
Chinese smelters fell by 0.5% in August from a month earlier,
according to a survey of producers by research house Antaike.
STIMULUS: In the latest attempt to shore up China's slowing
economy, the central bank last week said it was cutting the
amount of cash banks must hold as reserves for the third time
this year, releasing 900 billion yuan ($126 billion) in
liquidity. NICKEL: Production of nickel ore in the Philippines rose 3%
in the first half of 2019 to 11.31 million tonnes, its Mines and
Geosciences Bureau said, despite zero production at more than
half the country's mines. Philippines producer Marcventures Holdings said it plans to
develop and a new mine slated to begin commercial operation by
2021, seeking to take advantage of Indonesia's nickel export
ban, which has been brought forward by two years. PRICES: LME nickel CMNI3 was bid down 0.4% to $17,980 a
tonne, still trading near five-year highs touched last week on
lingering concern over potential shortages.
JAKARTA CONFERENCE: Traders in nickel, which is used to make
stainless steel and electric vehicle batteries, have started
arriving in Indonesia for the Asian Nickel conference.
POSITIONING: The net speculative long position on LME nickel
reached a two-year high at 43% of open interest, or 75,000 lots,
on Sept. 5, brokerage Marex Spectron estimates.
OTHER METALS: Aluminium CMAL3 was bid up 0.2% to $1,803 a
tonne, zinc CMZN3 was bid 0.7% lower at $2,292, lead CMPB3
gained 0.2% to $2,100, and tin CMSN3 was bid down 0.3%
to$17,250.

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China Aug copper imports, aluminium exports fall as slowdown
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