METALS-Copper rebounds from two-week low as inventories slide
* LME copper on-warrant inventories tumble to lowest since2005
* Nickel touches lowest since December
* Aluminium pulls off six-month low
(Updates with closing prices)By Eric OnstadLONDON, Oct 25 (Reuters) - Copper prices bounced on Thursdayfrom two-week lows as a sharp drop in inventories to theirlowest in a dozen years outweighed worries about sliding stockmarkets and the potential for slower global growth.On-warrant inventories - those not earmarked for delivery -in warehouses certified by the London Metal Exchange slid overnight by 9,150 tonnes to 72,625 tonnes,the lowest since December 2005, data showed on Thursday."The fundamentals are looking quite supportive, especiallyfor copper, but prices keep being pulled lower on risk aversion,the worries about a global slowdown," said Ole Hansen, head ofcommodity strategy at Saxo Bank in Copenhagen."The market is ebbing and flowing with risk aversion on andoff, but for now, there are enough fundamentals to offer supportfor copper, to attract buyers on dips."LME benchmark copper fell to a low of $6,113.50 atonne, its weakest since Oct. 11 after Wall Street's worst daysince 2011 on Wednesday.Some Asian stock markets saw heavy losses on Thursday butshares in top metals consumer China managed to close in theblack while U.S. and European markets attempted a rebound. After the LME inventory data, copper recovered and endedopen outcry trading 0.8 percent firmer at $6,226.
* COPPER PREMIUMS: Import copper premiums in China have fallen to $112.50 per tonne, the lowest sinceSept. 19, after hitting three-year highs of $120 a tonne latelast month.
* ALUMINIUM INVENTORIES: Aluminium failed to get muchsupport, despite LME on-warrant inventories falling 10,700tonnes to 737,400 tonnes. LME three-month aluminium finished down 0.2 percent at $1,994 a tonne after touching a lowof $1,991.50, the weakest since April.
* NICKEL/STEEL: LME nickel pared losses aftertouching $12,080 a tonne, the lowest since December 2017, whenChinese steel prices notched up a fourth straight day of gains. Nickel, mainly used in stainless steel, closed down0.6 percent at $12,155 a tonne.
* LEAD: Alastair Munro at broker Marex Spectron saidshort-covering helped LME lead remain in the black,edging up 0.4 percent to finish at $2,012 a tonne."Lead exhibits the largest short of the LME complex on ourestimates at 24 percent of open interest (based on last Friday'sclose) although this has come in from the recent peak of 39percent," Munro said in a note.
* PRICES: LME zinc slipped 1 percent to close at$2,637 a tonne while tin added 0.1 percent to $19,300.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in Beijing, editing byKirsten Donovan and David Evans)
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