(Recasts with updated prices) By Eric Onstad LONDON, Aug 2 (Reuters) - Copper prices slipped on Monday,weighed down by worries about demand after weak factory datafrom the United States and top metals consumer China.
A weaker dollar, hopes for more stimulus in China andprospects for a strike in top producer Chile cushioned thelosses. Three-month copper on the London Metal Exchange wasdown 0.5% at $9,678 a tonne at 1600 GMT, after falling by 1% onFriday. U.S. manufacturing activity grew at a slower pace in Julyfor the second straight month, while China's factory activityexpanded at the slowest pace in 17 months. Copper prices were firmer during most of the session aheadof the release of the U.S. factory figures. Metals are expected to retain an upside bias during the restof the month, said Gianclaudio Torlizzi, partner at consultancyT-Commodity in Milan. "The outlook for all base metals is bullish in August,supported by a weaker dollar after the latest dovish commentsfrom the Fed. There are all the conditions for a spike higher,"Torlizzi said. Torlizzi said he had taken bullish positions in copper,aluminium and nickel recently, and was targeting copperrevisiting its record peak of $10,747.50, aluminium climbing to$2,700 and nickel rising to $21,000. LME aluminium rose 1% to $2,616.50 a tonne, whilenickel CMNI3> shed 0.2% to $19,505.
* Also weighing on copper was profit-taking in options aheadof the LME option expiry on Wednesday, Alistair Munro at brokerMarex said in a note.
* The dollar index lurched back towards the one-monthlow hit last week, making dollar-priced metals cheaper toholders of other currencies.* The union of workers at BHP Group Ltd's Escondidacopper mine, the world's largest, rejected the firm's finallabour contract offer.* LME cash zinc has moved to a premium of $1.50 over thethree-month contract , the first time in more than ayear it has been more expensive, indicating tighter supplyconditions.
* LME zinc rose 0.2% to $3,033.50 a tonne, lead gained 0.7% to $2,398 and tin climbed 0.5% to$34,825.
* For top stories in metals and other news, click on or (Additional reporting by Mai Nguyen in HanoiEditing by Mark Potter and David Holmes)
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