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METALS-Shanghai copper hits 2-year low on demand worries

SINGAPORE, June 3 (Reuters) - Copper prices on the Shanghai Futures Exchange (ShFE) fell to their lowest in two years on Monday, as weak Chinese factory data and a U.S. threat to impose tariffs on Mexican goods sparked fears of weaker global growth and demand for metals.

The most-traded copper contract on ShFE dropped as much as 0.6% to 46,060 yuan ($6,678.17) a tonne, its lowest since June 2017. The contract was trading down 0.4% at 0159 GMT.

Benchmark London copper rebounded 0.1% after it fell at the sharpest monthly rate since November 2015 last month.

Factory activity in China, the world's largest consumer of metals, slumped in May to a deeper contraction than expected. Meanwhile, U.S. President Donald Trump threatened tariffs on all goods from Mexico, raising fears of a global recession.

FUNDAMENTALS

* Chile's state-owned miner Codelco, the world's largest copper producer, said on Sunday it partially halted work at its biggest copper mine El Teniente following a fatal accident.

* Spot prices for refining copper concentrate have fallen to their lowest in 6-1/2 years and look set to stay under pressure as China cements itself as a dominant producer of processed metal.

* Zimbabwe mining companies can pay for electricity in foreign currency to guarantee supplies, the energy minister said on Friday, a day after he indicated there could be deeper power cuts in the country because of low dam water levels.

* China threatened on Friday to unveil an unprecedented hit-list of "unreliable" foreign firms, groups and individuals that harm the interests of Chinese companies.

* London aluminum rose 0.2%, nickel eased 0.4%, zinc increased 0.2% and lead edged up 0.3%. In Shanghai, nickel fell 1.2%, zinc decreased 0.8% and lead eased 0.1%.

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MARKETS NEWS

* U.S. stock futures, Asian share markets and oil prices slipped to multi-month lows on mounting worries growing Sino-U.S. tensions and Washington's new tariff threats against Mexico could tip the global economy into a recession.

DATA/EVENTS (GMT)

0750 France Markit Mfg PMI May

0755 Germany Markit/BME Mfg PMI May

0800 EU Markit Mfg Final PMI May

0830 UK Markit/CIPS Mfg PMI May

1400 US ISM Manufacturing PMI May

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.8971 Chinese yuan)

(Reporting by Mai Nguyen; editing by Uttaresh.V)