(Updates with closing prices)By Peter HobsonLONDON, May 31 (Reuters) - Copper was set for its biggestmonthly fall since November 2015 as weak Chinese factory dataand a U.S. threat to impose tariffs on Mexican goods fannedfears that trade disputes will damage the global economy anddemand for metals.
Benchmark copper on the London Metal Exchange(LME)ended down 0.4% at $5,830 a tonne.
The metal used in power and construction has slipped 9% thismonth, its third straight monthly fall.
Most other industrial metals also fell in May, with zinc having its biggest monthly tumble since 2012.
"The fundamentals (for copper) are OK, it's the expectationsthat demand will be further undermined by tariffs and recessionfears hitting prices," said Societe Generale analyst Robin Bhar,adding that copper was likely to target a January low of $5,725.
CHINA DATA: China's factory activity slumped in May to adeeper contraction than expected. China is the world's largestconsumer of metals. MEXICO: U.S. President Donald Trump has threatened tariffson all goods from Mexico, starting at 5% and ratcheting higher,until illegal immigrants are stopped entering the United States.TRADE WAR: China threatened to unveil an unprecedentedhit-list of "unreliable" foreign firms, groups and individualsthat harm the interests of Chinese companies. GLOBAL MARKETS: European and U.S. stocks tumbled andsovereign bonds surged. Chinese stocks saw the biggest monthlydecline since October and oil suffered its steepest monthly dropin six months.JAPAN: A small bright spot was Japan, where industrialoutput rebounded in April. DOLLAR: The dollar dipped on Friday but was near two-yearhighs, making metals pricier for buyers with other currencies.FUNDAMENTALS: Supply side problems are likely to lead to atighter copper market, supporting prices. CHILE: Top producer Codelco reported an 18% year-on-yeardrop in its first-quarter copper output amid strike fears. TC/RCs: Spot prices for refining copper concentrate havefallen to their lowest in 6-1/2 years. ZINC: LME zinc finished 1.4% lower at $2,524 atonne, down almost 11 percent in May. However, weak output fromChinese smelters is likely to persist longer than expected,keeping the market tight. TIN: Benchmark tin did not trade in closing ringsbut was bid down 0.4% at $18,710. It is down 5% in May afterfalling 8% in April. Stockpiles in LME-registered warehouseshave more than quadrupled since early May and the premium forcash tin over three-month metal more than halved to $125,suggesting a supply squeeze has eased.OTHER METALS: LME aluminium ended up 0.7% at $1,795a tonne and was roughly flat this month. Lead closeddown 0.1% at $1,805 and around 6 percent lower this month.
Nickel was not included in closing rings but hadslipped 1.1% to $12,020 in electronic trading. It was broadlyunchanged in May.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS LME copper is set for the biggest monthly fall in 3-1/2 years ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter HobsonAdditional reporting by Mai NguyenEditing by David Evans and David Holmes)