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METALS-Copper edges up from one-month lows as sell-off stalls

(Updates with official prices)

LONDON, Nov 16 (Reuters) - Copper prices on Thursday edged up from one-month lows hit earlier in the week on worries over Chinese demand, while aluminium rose on expectations that a crackdown on polluting industry in China will cut supply.

A return to risk appetite across markets was helping lift industrial metals after prices fell in recent weeks, said Danske Bank analyst Jens Pedersen.

But weak economic data in China, the world's top consumer of metals, would push metals lower, said Julius Baer analyst Carsten Menke.

"All these metal-intensive sectors (in China), such as construction, infrastructure and property, seem to be on a slowdown ... This is a reality check for metals," he said.

COPPER: Benchmark copper on the London Metal Exchange traded up 0.4 percent at $6,797 a tonne in official rings, rising from a one-month low of $6,713 on Wednesday.

STOCKS: Copper inventories in LME-registered warehouses fell by 3,900 tonnes to 251,550 tonnes, continuing a steady decline to the lowest since mid-September and supporting prices. <MCUSTX-TOTAL>

CHINA OUTPUT: Zinc and copper output in China in October jumped to its highest in almost three years. Zinc production rose 3.8 percent year on year to 577,000 tonnes and copper was up 6.3 percent at 781,000 tonnes.

CHINA ECONOMY: China's economy cooled further last month, with industrial output, fixed-asset investment and retail sales missing expectations.

CHINA RISK: China's financial sector faces bubble risks, a government official said, adding that a property tax might be on the cards in the near future.

ALUMINIUM: LME aluminium traded 0.8 percent up at $2,123 a tonne, bouncing back from Wednesday's three-month low of $2,068.50. Aluminium prices in October rose to their highest since 2012 on expectations of capacity shutdowns in China.

OUTPUT CUTS: China Hongqiao Group said it closed enough smelting pots to comply with output restrictions, but a source said it was looking at moving recently shuttered illegal smelting capacity overseas, mainly to Indonesia.

OVERSUPPLY: "Relocating production capacities (from China) would contribute in the longer term to an oversupply of the global aluminium market," Commerzbank analysts said.

STOCKS: Julius Baer's Menke said inventories in China had risen in recent weeks despite capacity closures. "If there is no major drawdown on the inventory side, the market will be fast in pricing in some of the disappointment," he said.

CHINALCO: A unit of Chinese aluminium company Chinalco plans to start producing bauxite in the West African nation of Guinea this year or early 2018, a company executive said.

PRICES: LME Nickel did not trade but was bid down 0.5 percent to $11,630, zinc was bid 0.4 percent higher to $3,163, lead traded 0.1 percent down at $2,433 and tin traded up 1.3 percent at $19,600.

(Additional reporting by Melanie Burton; Editing by Edmund Blair and David Goodman)