Updates official prices

By Pratima Desai

LONDON, Aug 9 (Reuters) -Copper prices bounced on Friday after U.S. jobs data eased fears of a growth slowdown in the United States while falling inventories in top consumer China reinforced positive sentiment.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 1.4% at $8,921 a metric ton in official rings after hitting a 4-1/2 month low of $8,714 earlier this week on concern about the contagion effects of a potential recession in the United States.

Americans filing new applications for unemployment benefits fell more than expected last week, data showed on Thursday, suggesting nervousness about the labour market was overblown.

Traders said inflation data showing China taking a step back from deflation also underpinned the improved mood across equities and commodities markets.

"U.S. jobs data lifted sentiment, copper is following equities," one metals trader said, adding that falling stocks in warehouses monitored by the Shanghai Futures Exchange (ShFE) also provided support.

Copper stocks in ShFE warehouses CU-STX-SGH have dropped 15% over the past two months to 286,305.

Hopes for a recovery in China's copper consumption were highlighted by the Yangshan premium SMM-CUYP-CN, a closely watched indicator of China's import appetite, rallying to about $55 a ton this week for its highest since March.

"Lower prices have seen (Chinese) demand start to pick up, with wire and cable companies reporting an increase in orders, but this is still muted," Macquarie analysts said.

Traders are awaiting July data on China's new yuan loans and total social financing, viewed as an indicator of future industrial metals demand. Both are due over the next few days.

Elsewhere, tin CMSN3 soared by 4.1% to $31,750 a ton after touching a three-week high of $32,050.

Zinc prices advanced 3.4% to $2,736 a ton, the highest since July 23, as momentum picked up after a sustained break of the 200-day moving average around $2,660. Sister metal lead CMPB3 climbed 3.2% to $2,028.

Buying was triggered by expectations of higher energy costs, which account for about 50% of zinc production costs, a trader said.

In other metals, aluminium CMAL3 rose 1.9% to $2,318 a ton and nickel CMNI3 was up 1.2% at $16,345.

Reporting by Pratima Desai
Editing by David Goodman

 For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX