Aug 15 (Reuters) - Prices of industrial metals fell on Monday after key economic data in top consumer China missed expectations by large margins, reinforcing fears of weakening demand from the world's biggest metals market.
Three-month copper on the London Metal Exchange dropped 1.6% to $7,960 a tonne by 0729 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange fell 2% to 61,480 yuan ($9,091.45) a tonne.
China's economy unexpectedly slowed in July, with industrial output, fixed-asset investment, and retail sales all missing forecasts, while new yuan loans also tumbled more than expected.
Chinese new construction starts suffered their biggest fall in nearly a decade, as the property sector - which consumes a vast amount of metals - grappled with liquidity challenges.
"Copper ... recovered from a heavy sell-off earlier. But I am not sure how long the upward moment will last. I expect more downside risk. Fundamentals continue to be poor," said a metals trader.
However, China's Yangshan copper premium
LME lead fell 1.9% to $2,142.50 a tonne, tin declined 1.9% to $24,700 a tonne, zinc decreased 1.8% to $3,524.50 a tonne and aluminium shed 1.5% to $2,398.50 a tonne.
Aluminium prices on both the LME and ShFE hit their lowest in more than a week, after data showed China's July primary aluminium output hit a record monthly high of 3.43 million tonnes on easing power restrictions.
Analysts had expected Chinese aluminium smelters, despite squeezed profit margins, to keep ramping up production using last year's profits.
ShFE nickel shed 4.1% to 174,160 yuan a tonne, zinc fell 2.5% to 24,575 yuan a tonne, lead lost 2.1% to 14,985 yuan a tonne and tin tumbled 3.3% to 198,040 yuan a tonne.
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($1 = 6.7624 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips, Kirsten Donovan)
