METALS-Copper steady on China optimism, euro zone weighs

Beijing that may affect metals demand, with a leadership change at the

* China HSBC flash PMI hits 3-month high

* Market awaits U.S. FOMC policy statement at 1815 GMT

* More debate likely by Fed, no decision on policy triggers

LONDON, Oct 24 (Reuters) - Copper was steady on Wednesday on signs of recovery in top consumer China, although gains were capped by weak euro zone data, including in Germany, and ahead of a Federal Reserve policy statement due later on Wednesday. China's economy is slowly picking up from its weakest period of growth in three years, a survey of purchasing managers (PMI) signalled, with new orders and output at their highest in three months. Eurozone PMI's were weak, however. Data for October showed businesses suffered their worst month since the bloc emerged from its last recession more than three years ago, forcing them to cut more jobs to reduce costs.

German business sentiment dropped for the sixth successive month in October, in a surprise fall that was bigger than even the lowest forecasts, signalling that the debt crisis is hitting home in Europe's largest economy.

Benchmark three-month copper on the London Metal Exchange was $7,825 at 1434 GMT from $7,831 a tonne at the close on Tuesday. It touched $7,807.75 on Tuesday, its lowest level in six weeks and below key support at its 200-day exponential moving average. ``I don't think one should expect too much from China in terms of a pick-up given the government is in transition. Also post LME Week most people are neutral towards metals,'' said Societe Generale analyst Robin Bhar, referring to the annual metals industry event that took place last week. ``The negative news is priced in but, equally, until economies start to move higher, we're not going to challenge the upside.'' The Fed's two-day meeting ends later in the session, though analysts expect it will hold off from taking fresh monetary easing steps, and will instead review the impact of the significant action it took last month.

CHINA Over the next few months, market players will also look out for new policies Communist Party Congress on Nov. 8 ``London copper is buoyed by today's PMI numbers, but Shanghai copper was mainly held back from further gains by a still-sluggish Chinese copper physical market,'' said Orient Futures analyst Andy Du. In a sign of weak demand, Shanghai Futures Exchange spot copper prices traded at a discount of up to 200 yuan to the ShFE front month contract earlier, a bigger spread than the previous session. Also, China's September copper imports jumped 6.93 percent on the year, but the gain was largely due to the arrivals of term shipments booked last year rather than a spike in demand. Lead was down 0.5 percent at $2,013 a tonne, having hit its lowest level since early September at $2,007 earlier. It closed at $2,023 on Tuesday. LME lead stocks fell by 1,575 tonnes to total 310,975, with most withdrawals seen in Johor, a backlogged warehouses location. Total stocks, however, continue to climb strongly, with large deliveries concentrated in the Belgian port of Antwerp. The increases are weighing on lead, as is data from the Lisbon-based International Lead and Zinc Study Group (ILZSG) that showed the global lead market was in surplus by 80,000 tonnes in the first eight months of the year.

The data also showed the global zinc market was in surplus by 128,000 tonnes in the first eight months of the year. Zinc was $1,849 a tonne from $1,847 at the close on Tuesday. Tin was $20,275 a tonne from $20,255 and nickel was $16,305 from $16,355. Aluminium was $1,928, having hit its lowest since early September at $1,925, from a last bid of $1,947 on Tuesday.

Metal Prices at 1438 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T

Metal Last Change Pct Move End 2011 Ytd Pct


COMEX Cu 355.60 -1.35 -0.38 344.75 3.15LME Alum 1929.00 -18.00 -0.92 2020.00 -4.50LME Cu 7823.25 -7.75 -0.10 7600.00 2.94LME Lead 2012.50 -10.50 -0.52 2034.00 -1.06LME Nickel 16316.00 -39.00 -0.24 18650.00 -12.51LME Tin 20250.00 -5.00 -0.02 19200.00 5.47LME Zinc 1850.25 3.25 +0.18 1845.00 0.28SHFE Alu 15420.00 30.00 +0.19 15845.00 -2.68SHFE Cu* 57500.00 220.00 +0.38 55360.00 3.87SHFE Zin 14880.00 95.00 +0.64 14795.00 0.57** Benchmark month for COMEX copper* 3rd contract month for SHFE AL, CU and ZN

SHFE ZN began trading on 26/3/07