METALS-Nickel and copper edge lower on Chinese demand fears

(Updates throughout, moves dateline from Melbourne)

LONDON, Nov 16 (Reuters) - Nickel and copper prices edged lower on Thursday as data showing a slowdown in China continued to weigh, but prices for aluminum rose on hopes a Chinese crackdown on pollution would cut supply.

"We are witnessing increasing concerns about a slowdown in China's economy," said Julius Baer analyst Carsten Menke, predicting that prices would fall further.

"All these metal-intensive sectors 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 was down $3 percent at $6,770 a tonne at 1130 GMT, near a one-month low of $6,713 hit on Wednesday.

TECHNICALS: Fibonacci support was at $6,675, said brokers Marex Spectron.

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 the 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 aluminum was up 0.7 percent at $2,121.50 a tonne, bouncing back from Wednesday's three-month low of $2,068.50.

OUTPUT CUTS: Aluminium prices in October rose to the highest since 2012 on expectations of capacity shutdowns in China, the world's biggest producer.

HONGQIAO: China Hongqiao Group said it closed enough smelting pots to comply with output restrictions, but a source said it was looking into 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 aluminum market," analysts at Commerzbank 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 aluminum firm 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 was down 0.6 percent at $11,625, zinc was 0.1 percent higher at $3,154.50, lead had lost 0.5 percent to $2,424 and tin was up 1.1 percent at $19,530.

(Additional reporting by Melanie Burton; Editing by Edmund Blair)