METALS-London copper slips as Fed stimulus rally fizzles
* Anglo eyes 20,000 to 25,000 T Brazil nickel output this year
* China bonded copper premiums steady at $170-$200 -Shmet
* Coming Up: Germany Ifo business climate; 0800 GMT
(Adds comment, detail; updates prices)
SINGAPORE, Sept 24 (Reuters) - London copper fell on Tuesday, as a rally sparked after the Federal Reserve held back cuts to its stimulus program fizzled, which matched with the prospect of rising supply overshadowed a brightening outlook for demand.
Three-month copper on the London Metal Exchange had slipped 0.82 percent to $7,190.75 a tonne by 0707 GMT, extending losses of less than half a percent from the previous session.
Copper hit its highest in almost a month on Friday at $7,368 a tonne after the U.S. Federal Reserve held off on tapering its stimulus programme but its rally is petering out and prices will need a new catalyst to break out of the range of $7,000 to $7,500 where the metal has stayed since early August.
The Federal Reserve must continue for now to battle threats to the U.S. recovery, but should still be able to reduce its support for the economy later this year, a central bank policymaker said.
A flood of new orders gave a boost to European and Chinese firms in September although weakness in U.S. factory activity tempered evidence of a healing global economy.
"The Chinese PMI data was quite positive but commodity prices were mostly lower overnight," said analyst Tim Radford of Sydney-based adviser Rivkin.
"Copper has been supported by brightening China data... and the trend may continue into the end of the year," he added.
Radford said growing supply of copper was overhanging the market, while the end of the commodity supercycle flagged lower demand growth for commodities, and potentially lower prices.
Reflecting still steady physical demand for copper, premiums for metal held in China's bonded areas held static at $170 to $200 a tonne on Tuesday, China price provider Shmet said.(http://www.shmet.com/)
The most-traded December copper contract on the Shanghai Futures Exchange reversed early gains to end down 0.25 percent at 51,750 yuan ($8,500)a tonne.
Two of the world's top copper producers, Anglo American and Southern Copper, are talking about teaming up to develop Anglo's $3.3 billion Quellaveco mega mine in Peru, Southern Copper's chief executive said.
The move comes against the backdrop of rising supply into the end of the year and beyond. The global market for refined copper is expected to swing into a 153,000-tonne surplus this year more than doubling into 2014, a Reuters poll showed. <MKTBAL-ACL>.
Elsewhere, Anglo American expects to produce 20,000 to 25,000 tonnes of nickel in Brazil in 2013, the executive president of its Brazilian nickel unit said.
LME nickel has been by far the worst performer of the LME contract this year, as supply grows and stainless steel producers turn to a cheaper substitute.
Prices are down more than 18 percent so far this year, compared to aluminium, the second worst performer, with losses of less than 13 percent year to date.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin ($1=6.1210 Chinese yuan)
($1 = 6.1210 Chinese yuan)
(Reporting by Melanie Burton; Editing by Clarence Fernandez)