METALS-Copper breaks four-session win streak on firmer dollar, China worries

By Eric Onstad

LONDON, Aug 27 (Reuters) - Copper slipped on Wednesday, breaking four sessions of gains, weighed down by a stronger dollar, rising inventories and concern about demand in China, the top metals consumer.

The benchmark three-month contract CMCU3 on the London Metal Exchange was down 0.9% at $9,750 a metric ton by 1430 GMT, having hit a two-week peak of $9,862 on Tuesday.

LME copper has climbed 11% this year, rebounding from more than a 16-month low of $8,105 in early April.

"Chinese demand is showing signs of slowing, with headwinds for the economy including tariffs and the ailing property sector," said Ewa Manthey, a commodities strategist at ING.

Data from China was mixed, showing industrial profits declined for a third straight month in July against a backdrop of weak demand and ongoing factory gate deflation.

The decline, however, was less than the drops in May and June, and manufacturing sector profits climbed by 6.8%.

The improvement could be the result of a campaign the Chinese government has been waging over the past two months to reduce excess capacity in industry, including metals, said Alastair Munro, senior base metals strategist at Marex.

"Metals are holding up pretty well given the softer macroeconomic environment and the dollar rally," Munro said.

Metals prices were also pressured by a firmer dollar .DXY after U.S. President Donald Trump's move to fire Federal Reserve Governor Lisa Cook, which renewed investor concern over the central bank's independence. FRX/

A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies.

Rising inventories in warehouses registered by the LME and U.S. COMEX exchange also undermined sentiment.

LME copper inventories MCUSTX-TOTAL, which added another 1,100 tons in data released on Wednesday, have surged by 72% since late June to 156,100 tons. COMEX stocks HG-STX-COMEX have nearly tripled so far this year.

Among other metals, LME aluminium CMAL3 dropped 1.3% to $2,603.50 a ton, nickel CMNI3 lost 1.1% to $15,115 and zinc CMZN3 shed 1.7% to $2,766 after hitting a three-week low.

Lead CMPB3 was flat at $1,988 a ton and tin CMSN3 climbed 0.7% to $34,430, the strongest in about a month.

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($1 = 7.1529 Chinese yuan)