METALS-Shanghai copper hits over one-week low after Fed's rate cut

By Amy Lv and Lewis Jackson

BEIJING, Sept 18 (Reuters) - Shanghai copper futures fell to their lowest in more than a week on Thursday as traders booked profits following an expected 25-basis-point interest rate cut by the U.S. Federal Reserve, and due to higher supply from top consumer China.

Following Wednesday's rate cut, the U.S. central bank also indicated that more cuts would follow in October and December.

Traders closed some long positions to cash in profits from bets on the rate cut, weighing on prices of the red metal used in power and construction.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 slipped below the key psychological level of 80,000 yuan ($11,256.51) per metric ton, down 1.36% to 79,620 yuan a ton.

The contract hit its lowest since September 10 at 79,500 yuan earlier in the session.

Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.43% at $9,953.5 a ton by 0815 GMT after touching its one-week low at $9,925 on Wednesday.

"Prices have slid to a level close to their 20-day moving average and may fall into a prior support range between 79,000 yuan and 79,500 yuan," said Xiao Jing, lead analyst at broker SDIC Futures.

"Eyes are now on inventory data to be out on Friday."

Also, higher metals output in China weighed on sentiment, ANZ analysts said in a note.

China's refined copper output in August jumped 15% year-on-year to near a record high level, official data showed.

Among other SHFE metals, aluminium SAFcv1 slid 0.91%, nickel SNIcv1 dipped 0.89%,tin SSNcv1 fell 1.46%, and zinc SZNcv1 shed 1.1% while lead SPBcv1 added 0.38%.

For other LME metals, aluminium CMAL3 lost 0.26%, nickel CMNI3 languished 0.88%, lead CMPB3 shed 0.1%, tin CMSN3 slid 0.63%, and zinc CMZN3 fell 0.73%.

($1 = 7.1070 Chinese yuan)