(Updates with closing prices)By Peter HobsonLONDON, April 4 (Reuters) - Copper prices fell on Thursdayas weak German factory data underlined concerns about theoutlook for demand and a big inflow of metal into London MetalExchange (LME) warehouses suggested supply was adequate.
Other industrial metals also slipped despite positivesignals from U.S.-China trade talks. Benchmark copper on the LME closed down 0.6 percentat $6,450.50 a tonne.The metal, used in power and construction, has risen from an18-month low of $5,736 in January on hopes that China, thelargest consumer, can prevent a sharp economic downturn.
But prices have remained stuck around current levels sincelate February.
"$6,500 appears to be a bit of a barrier," said CapitalEconomics analyst Ross Strachan.
Copper supply is tight, but deteriorating economic growth inEurope, China and the United States will sap demand, he said,predicting prices would fall slightly over the year.
GERMAN/U.S. DATA: German industrial orders fell by 4.2percent, their sharpest rate in more than two years, inFebruary, hit by a slump in foreign demand. Strong U.S. employment data, however, pointed to sustainedlabour market strength despite slowing economic growth. TRADE TALKS: U.S.-China trade talks made "good headway" lastweek and the two sides aim to bridge differences during talksthat could extend beyond three days this week, White Houseeconomic adviser Larry Kudlow said. GLOBAL MARKETS: European and Asian shares slipped from8-month highs, though Chinese shares rose. LAS BAMBAS: A Peruvian judge ordered three years of jailtime for three lawyers representing indigenous villagers whohave blockaded shipments from a massive copper mine, worseningthe dispute. COPPER STOCKS: Copper inventories in LME-registeredwarehouses leaped by 30,375 tonnes to 198,325 tonnes, thehighest in six months and nearly double the level three weeksago. Total stockpiles in LME, Comex, Shanghai Futures Exchange and Chinese bonded warehouses have risen by closeto 300,000 tonnes this year, according to analysts at Barclays.
COPPER SPREAD: Cash copper on the LME has flipped from ahefty premium over the three-month contract to a$14.25 discount, suggesting a shortage of nearby metal haseased.
TIN: LME tin ended down 0.5 percent at $21,075 atonne, even with stocks in LME warehouses at a record low of 920tonnes . The premium for cash tin over three-monthmetal jumped to $195 from $49 on Monday, pointing to ashortage of immediately available metal.
CHINA HOLIDAY: The Shanghai Futures Exchange will be closedon Friday for the Tomb Sweeping Day holiday in China. OTHER METALS: LME aluminium finished down 0.1percent at $1,895 a tonne, nickel fell 2.1 percent to$13,100, zinc slipped 1.1 percent to $2,897 and lead closed down 0.9 percent at $1,994.50.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson; additional reporting by Mai Nguyenand Tom Daly; editing by David Evans and Kirsten Donovan)