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METALS-London copper, other metals drift lower in thin pre-holiday trade

(Adds Shanghai closing prices, updates London prices) BEIJING, Dec 23 (Reuters) - Copper prices slipped for a second day on Monday in thin pre-holiday trade in London and also lost ground in Shanghai, as a rally fuelled by optimism over the 'phase one' trade deal between the United States and China began to run out of steam. The unsatisfactory performance of the spot market has "weakened the upward momentum" of copper prices, Chinese brokerage Citic Futures said in a note, adding that there would be a lack of macro-economic news this week for copper to take its cue from. On a micro level, demand for copper pipes in China has slightly increased and copper bar companies have increased their production rates, although these are still lower than a year ago, Citic Futures added. The London Metal Exchange will remain closed on Dec. 25-26 for the Christmas holiday.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange dipped 0.2% to $6,163.50 a tonne by 0715 GMT, after closing down 0.6% in the previous session. The most-traded February copper contract on the Shanghai Futures Exchange closed down 0.4% at 49,050 yuan ($6,996.25) a tonne.

* COPPER: The global world refined copper market showed a 81,000 tonne deficit in September, compared with a 37,000 tonne surplus in August, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

* CHINA TARIFFS: China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year as Beijing looks to boost imports amid a slowing economy and a trade war with the United States.

* CODELCO: Chile's state copper miner Codelco said on Friday it would cancel a contract awarded in November to a consortium led by Japanese firm Marubeni to construct a desalination plant to feed its northern mines.

* OTHER METALS: The entire LME complex was in the red, with lead the chief laggard. The metal fell by 0.9% in London to $1,921.50 a tonne and closed down 1.6% in Shanghai. Lead ore processing fees <AM-CN-PBCONC> have risen further in December, which will incentivise higher refined lead production, while consumption remains weak, Citic said. Shanghai nickel was the top performer, closing up 1.8% after hitting 114,030 yuan a tonne, its highest since Nov. 28.

* SCRAP: China's imports of scrap metal in November rose by 6.3% from the previous month to 170,000 tonnes, data released by the General Administration of Customs showed on Monday.

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MARKETS NEWS

* Asian markets idled near 18-month highs as trading volumes weakened ahead of the Christmas holiday break, with investors taking profit on gains made earlier this month.

PRICES

BASE METALS ARBITRAGE

3

3

3

3

3

($1 = 7.0109 Chinese yuan)

(Reporting by Tom Daly; Editing by Rashmi Aich and Subhranshu Sahu)