(Recasts and updates with closing prices)By Pratima DesaiLONDON, Oct 29 (Reuters) - Copper prices steadied on Mondaywith support from shortages created by tumbling inventories onthe London Metal Exchange countering concern over growth anddemand because of the U.S.-China trade dispute.Benchmark copper on the LME ended unchanged at$6,160 a tonne, having touched a session high of $6,240."Copper is very much being driven by availability of metalon exchange and strong physical demand," said Kash Kamal, anassociate at BMO Capital Markets. "Macro headwinds include thetrade war between two of the world's largest economies."
STOCKS: Inventories of copper in LME-approved warehouses, at143,125 tonnes, are down more than 60 percent since the 2018peak near 390,000 tonnes. The problem is compounded by cancelled warrants -- metalearmarked for delivery -- at nearly 54 percent of total stocksand a large holding of copper warrants between 50 and 79percent. SHORTS: Traders say covering of short positions ahead ofmonth-end is exacerbating nearby tightness.
This can be seen in the premium for the cash over thethree-month contract, which hit $47 a tonne on Friday, itshighest since February 2015. It was last around $38 a tonne.PROFITS: Profit growth at Chinese industrial companiesslowed for the fifth consecutive month in September as sales ofraw materials and manufactured goods ebbed further, pointing tocooling domestic demand. China's major stock indexes fell sharply on Monday asearnings reports on industrial and consumer companies sent freshjitters through the market, raising concerns about a slowdown ineconomic growth. CHINA PMIs: Growth in China's factory sector is likely tohave cooled further in October as domestic demand faltered andexporters felt a bigger sting from the intensifying trade warwith the United States, a Reuters poll showed. CHINA DEMAND: China is the world's largest consumer ofcopper, accounting for nearly half of global demand estimated atabout 24 million tonnes this year.
TARIFFS: Chinese tariffs on imports of scrap from the UnitedStates has driven strong demand for copper cathode. China's unwrought copper imports surged to their highest in2-1/2 years in September, while copper concentrate importsclimbed to a record high as the crackdown on scrap leaves itneeding other forms of the metal. DOLLAR: A higher U.S. currency, which makesdollar-denominated commodities more expensive for holders ofother currencies, was weighing on prices of industrial metalsbecause it could subdue demand.PRICES: Aluminium ended 0.8 percent down at $1,982 atonne, zinc fell 1.1 percent to $2,622, lead wasdown 2.1 percent at $1,956, tin slipped 0.9 percent to$19,125 and nickel ceded 1.2 percent to $11,755.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima DesaiEditing by Louise Heavens and David Goodman)