METALS-Copper slips, growing supply in focus
* China HSBC PMI hits 6-month high
* Euro slips vs dollar
* Coming up: U.S. Markit manufacturing PMI for Sept
LONDON, Sept 23 (Reuters) - Copper prices fell on Monday, slipping for the second straight session, as a weak euro and concerns about growing supply offset hopes for a rebound in demand from top consumer China. Three-month copper on the London Metal Exchange fell to $7,223 a tonne at 1002 GMT, down from a close of $7,280 on Friday. Shanghai futures finished 1.3 percent higher, tracking last week's gains in financial markets as the exchange opened after the mid-autumn break. The metal has risen close to 10 percent since touching three-year lows in June on mounting evidence that the slowdown in the Chinese economy may be bottoming out. Growth in China's factory sector accelerated to a six-month high in September, a preliminary survey showed on Monday, adding to recent signs of a tentative turnaround in the world's second-largest economy. China is the world's largest copper consumer, accounting for around 40 percent of global refined demand. Weighing on prices were concerns about growing supply of the metal used in power and construction with the market expected to be in surplus by 153,000 tonnes this year, according to a Reuters poll conducted in July. "In copper there is the view of an acceleration of supply and new mines being commissioned, and that has been the focus for the second half of the year. In 2014 we are likely to get more supply coming through," said Robin Bhar, analyst at Societe Generale. "The gains last week in copper saw some producers selling, as copper prices for a lot of producers are still attractive. The upside for copper will be capped by opportunistic producer selling." Highlighting the supply outlook, BHP Billiton said in July its majority-owned Chilean deposit Escondida, the world's biggest copper mine, reported a 28 percent rise in output in the 2013 fiscal year, while shipments from Mongolia's giant Oyu Tolgoi mine, run by Rio Tinto, began shipments in July. "Even though China is recovering, people really don't see the demand growth as enough to offset supply," said Barclays analyst Sijin Cheng in Singapore. "You have mine production rising quickly and the market consensus is that the oversupply situation will worsen in Q4 and 2014." The copper market came under additional pressure from a weak euro, which slipped against the U.S. dollar. A stronger dollar makes commodities priced in the U.S. unit more expensive for holders of other currencies. The metal rallied as much as 4 percent after the Federal Reserve surprised markets last week by saying it would maintain bond purchases at their present pace, but the recovery lost steam on Friday.
Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Three month LME tin CMSN3
(Additional reporting by Naveen Thukral in Singapore, editing