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METALS-Copper limps to eight consecutive weekly loss

Peter Hobson

(Updates with official prices)

LONDON, June 7 (Reuters) - Copper prices were heading for an eighth consecutive weekly fall after trade disputes and signs of slowing global economic growth weakened the demand outlook for metals.

Benchmark copper on the London Metal Exchange (LME) traded down 0.4% at $5,785 a tonne in official rings for a 0.7% decline this week.

Copper has fallen by about 14% from an April high of $6,608.50 after hopes of a quick U.S.-China trade deal faded, with the market also pressured by a run of poor economic data and U.S. President Donald Trump threatening tariffs on Mexican goods.

An increase in risk appetite among investors this week has lifted global stock markets from recent lows and helped to support copper prices, said Saxo Bank analyst Ole Hansen.

"But we are not out of the woods yet," he said. "We need to see data reducing recession fears or implying lower supply (of copper). Until we see that, copper is likely to struggle."

CHINA HOLIDAY: Volumes were subdued, with Chinese markets closed for the Dragon Boat Festival.

TRADE WAR: Donald Trump said he would decide whether to impose tariffs on at least $300 billion of Chinese goods after a meeting of G20 nations later this month.

MEXICO: U.S. and Mexican officials held a second day of talks on trade and migration on Thursday, with markets rebounding on optimism a deal could be close.

CHINA STIMULUS: China, the largest consumer of metals, announced measures to revive slumping car sales. The governor of its central bank said there was "tremendous" room to make adjustments if the China-U.S. trade war worsens.

GERMANY: Industrial output and exports fell sharply in April.

POSITIONING: Speculators' net short position in LME copper has expanded to 9.8% of active contracts - the largest since September, according to broker Marex Spectron.

CODELCO: Unions at Chile's huge Chuquicamata copper mine agreed to extend negotiations with operator Codelco in the hope of averting a strike.

LEAD: LME lead did not trade but was bid down 2.9% at $1,835 a tonne, though it was up about 1.7% on the week after a major smelter halted production and declared force majeure.

LEAD SPREAD/STOCKS: The premium of cash lead over the three-month contract <MPB0-3> fell to $5 from a more than two-year high of $39. A premium suggests tight nearby supply. Headline stocks in LME-registered warehouses, at 66,525 tonnes, are the lowest in a decade. <MPBSTX-TOTAL>

OTHER METALS: LME aluminium traded down 0.6% at $1,765 a tonne, zinc traded 0.8% lower at $2,483, nickel slipped 0.2% to $11,650 and tin was up 1.2% at $19,475. All but tin were down this week.

(Reporting by Peter Hobson Additional reporting by Mai Nguyen Editing by Mark Potter and David Goodman)