(Updates with closing prices)By Peter HobsonLONDON, Sept 11 (Reuters) - Copper prices dipped onWednesday after a sharp fall in Chinese auto sales underlinedfears of weaker demand from the world's largest consumer ofmetals.
Concerns over China's economic outlook outweighed anyoptimism from a decision by Beijing to exempt some U.S. goodsfrom additional tariffs, potentially easing tensions in adamaging trade dispute. Benchmark copper on the London Metal Exchange (LME)did not trade in closing rings but was bid down 0.9% at $5,772 atonne, moving toward a two-year low of $5,518 hit earlier thismonth.
Unless a U.S.-China trade deal is reached, prices willlikely remain around current levels as weaker demand is offsetby constraints on supply, said Saxo Bank analyst Ole Hansen.
"We've seen the bottom for copper for this year," he said.
CHINA CARS: China's total auto sales fell 6.9% from the samemonth a year earlier to 1.96 million, the China Association ofAutomobile Manufacturers said, warning of weak sales ahead. The figures follow a string of weak Chinese manufacturingdata. China has made some moves to stimulate activity, includinga cut to bank reserve requirements announced last week. CHINA OUTPUT: Refined copper cathode production by majorChinese smelters fell by 0.5% in August from a month earlier, asurvey by research house Antaike showed. PERU: An indefinite strike by mining unions in Peru thatstarted on Tuesday has failed to draw large numbers of workersand has not affected output at mines in the world's No.2 copper,zinc, and silver producer, an industry association said. NICKEL: LME nickel closed down 0.8% at $17,900 atonne even as the premium for cash metal over the three-monthcontract surged to a 10-year high of $107, pointing to tighternearby supply. Benchmark nickel leaped to a five-year high of $18,850 thismonth after top supplier Indonesia said it would ban ore exportsnext year. STOCKS: On-warrant stocks of nickel available to the marketin LME-registered warehouses fell to 83,346 tonnes, down fromaround 250,000 tonnes at the start of 2018 and the lowest since2011. One entity holds between 80% and 89% of warrants. PHILIPPINES: Nickel miners in the Philippines are likely toramp up ore output by next year, but their production capacityis limited, a local industry lobby group said. The Philippines' mining watchdog meanwhile recommendedlifting the suspension of a small-sized nickel miner. LEAD: China's primary lead output rose 3.6% year-on-year to242,000 tonnes in August, while recycled lead production was up9.1% year-on-year at 196,000 tonnes, Antaike said. Benchmark lead finished down 0.4% at $2,093 a tonne.OTHER METALS: LME aluminium closed up 0.3% at $1,825a tonne, zinc gained 1.1% to $2,363 and tin rose2.2% to $17,775.
(Reporting by Peter Hobson; additional reporting by Tom Daly;editing by Alexander Smith and Lisa Shumaker)