Copper heads for weekly decline amid bleak global growth outlook By Reuters

LONDON (Reuters) – Prices rose on Friday but were on track to end the week slightly lower as traders weighed the outlook for strong demand in China against pessimism about the global economy.

* Inflation data in Germany and Japan on Friday, as well as data from European and US central bank governors this week, suggest that rapid and economically damaging interest rate hikes will continue.

* Investors were cautious, causing stocks to fall and the dollar to rise, which in turn put pressure on metals priced in dollars.[MKTS/GLOB] [USD/]

* Many analysts expect recessions in Europe and the United States and slower growth elsewhere, including China, the largest consumer of the metals.

* However, China is expected to cut benchmark interest rates on Monday and promised other stimulus to support its economy.

*Also, its copper market appears to be very tight. Liangshan’s copper import premiums rose to $107 per ton, compared to less than $10 in March, indicating increased appetite for the metal from abroad.

* Benchmark copper on the London Metal Exchange (LME) rose 0.4% to $8,060 a ton, but is down 0.3% this week.

Prices of the metal used in energy and construction have risen from a low of $6,955 a tonne in July, but are down 17% this year.

* Many analysts expect rapid growth in copper supply next year and a surplus in the market.

* The London Metal Exchange index fell 0.5% to $2,390 per ton. It rose 0.8% to $3,499.50; It was steadily trading at $21.785; Lead was down 0.5% at $2,062.50 and tin was down 0.2% at $24.550.

* They are all down between 2% and 6% this week.

* To view updated base metal prices:

– copper

– bullets

– TIN

– nickel

– aluminum

– zinc

(Reporting by Peter Hobson; Additional reporting by Cie Liu and Dominic Patton; Editing in Spanish by Javier López de Lleida)