METALS-London metals mixed after disappointing China factory report
(Adds comment, detail, updates prices) By Melanie Burton MELBOURNE, Aug 14 (Reuters) - London copper was little changed on Monday, holding below recent two-year peaks as analysts flagged prospects of a correction given strong price gains over the past month and disappointing factory activity from China. China's factory output grew 6.4 percent in July from a year earlier, while fixed-asset investment expanded 8.3 percent in the first seven months, both below economists' forecasts. "The metals sector remains even more vulnerable than other sectors (to a correction) due to the strong rally it has enjoyed over the past month," said ANZ in a report. FUNDAMENTALS * LME COPPER: London Metal Exchange copper pared early gains to trade at $6,405 a tonne by 0715 GMT, down 0.1 percent after closing slightly softer on Friday. Prices hit the highest in more than 2-1/2 years on Aug. 9 at $6,515 a tonne and are up by almost 8 percent so far this quarter. * SHFE COPPER: Shanghai Futures Exchange copper ended down 0.2 percent. LME zinc and LME lead both traded up around 0.8 percent, while LME aluminium LME nickel and LME tin were a shade weaker. * CHINA ALUMINIUM: China's aluminium output fell 8.2 percent in July from a record high a month earlier, data showed on Monday, as capacity cuts that have sent prices to multi-year highs start to take their toll on the country's output. * Shfe aluminium and nickel fell nearly 2 percent, following last week's strong gains. * STOCKS: Reflecting ample available supply, Shanghai aluminium and copper inventories surged, weekly inventory data on Friday showed. * ALUMINIUM: Shfe aluminium stocks AL-STX-SGH which have been climbing all year, hit the highest since May 2013, at 473,000 tonnes, as traders stockpile metal in warehouses in case of winter cuts, encouraged by financeable spreads. * NICKEL: Nearby nickel CMNIT-0 spreads blew out to $4.90 for tomorrow against next day delivery, while aluminium cash to three month spreads CMAL0-3 have also sharply narrowed, suggesting shorts are likely to deliver against their positions where possible as the prime traded contract expires this week. * ZAMBIA: Copperbelt Energy Corp (CEC), Zambia's main supplier of power for its mines, confirmed on Sunday that it has restricted the amount of electricity it supplies to Glencore unit Mopani Copper Mines (MCM) because of a dispute over tariffs. * SPECULATORS: Hedge funds and money managers lifted their net long position in copper futures and options further to a fresh record, U.S. Commodity Futures Trading Commission data showed on Friday. * COMING UP: Euro zone industrial production for June at 0900 GMT * For the top stories in metals and other news, click or PRICES BASE METALS PRICES 0715 GMT Three month LME copper 6404 Most active ShFE copper 50050 Three month LME aluminium 2029.5 Most active ShFE aluminium 15775 Three month LME zinc 2912.5 Most active ShFE zinc 24065 Three month LME lead 2343 Most active ShFE lead 19035 Three month LME nickel 10600 Most active ShFE nickel 86180 Three month LME tin 20235 Most active ShFE tin 144200 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 380.52 LME/SHFE ALUMINIUM LMESHFALc3 83.44 LME/SHFE ZINC LMESHFZNc3 879.2 LME/SHFE LEAD LMESHFPBc3 183.87 LME/SHFE NICKEL LMESHFNIc3 1954.54 (Reporting by Melanie Burton; Editing by Richard Pullin and Biju Dwarakanath)