* Copper registers biggest one-day loss since Oct. 31 * Investors scramble to shed copper longs (Updates with closing prices) By Eric Onstad LONDON, Jan 21 (Reuters) - Copper prices slumped on Tuesdayas investors liquidated recent bullish positions over fears thata new strain of coronavirus in China could hit economic growthin the world's top metals consumer. The metal often used as a gauge of economic health alsosuffered after inventories in London Metal Exchange-registeredwarehouses jumped by a third overnight, providing a boost tosupplies in LME depots after months of erosion. The death toll from a mysterious flu-like virus in Chinaclimbed to six on Tuesday as new cases surged beyond 300, withfears of further outbreaks as millions of Chinese travel for theLunar New Year holiday. Many Chinese traders are also closing their positions beforetaking time off for the holiday. "The sector is taking a bit of a tumble. Even though it's ona relatively small scale right now, it (the virus) just hitsconfidence, having a dampening impact on the otherwise risk-onclimate that's we've had so far this year," said Ole Hansen,head of commodity strategy at Saxo Bank in Copenhagen. Funds are net long of the CME copper contract for the firsttime in nine months and the speculative net long position on theLME had grown to 15% of open interest on Friday, according toestimates by broker Marex Spectron. "A lot of these recently established longs are potentiallygetting close to being out of pocket and that's adding to theselling pressure," Hansen said. Benchmark LME copper shed 1.6% to $6,160 a tonne infinal open-outcry trading, the biggest one-day loss since Oct.31. It earlier touched $6,150, its weakest since Jan. 8.
The most-active copper contract on the Shanghai FuturesExchange closed 1.4% down at a six-week low of 48,420yuan a tonne.
* COPPER STOCKS: LME copper inventories surged by 38,700 tonnes to 162,925 tonnes, daily LME datashowed. Until the big inflows, stocks had shed 63% since theirpeak last August. * COPPER DEFICIT: The global world refined copper marketshowed a deficit of 33,000 tonnes in October, down from 89,000tonnes in September, data showed.* ZINC SPREAD: The premium of LME cash zinc to thethree-month contract has increased to $22.25 a tonne,its highest since Nov. 29, having swung from a discount of $3.50on Dec. 11. The premium indicates tighter availability of LMEsupplies.
* OTHER PRICES: LME aluminium rose 0.7% to closeat$1,824 a tonne while zinc gained 0.4% to $2,454.50 andnickel dropped 2.6% to $13,665. Lead finished unchanged at $1,961 while tin slid 1.5% to $17,575 after touching its strongest since lastJuly at $17,970.
* For the top stories in metals and other news, click or ($1 = 6.8985 Chinese yuan renminbi) (Additional reporting by Mai Nguyen in Singapore; editing byDavid Goodman and David Evans)
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