* China macro data unsettles industrial metals investors * Many metal stocks rising, locked into finance deals * Sudbury nickel mine talks watched (Recasts, adds comments/details, changes dateline pvs SINGAPORE) By Michael Taylor LONDON, Feb 1 (Reuters) - Copper fell to a two-and-a-half month low on Monday, as strong economic data heightened investor concerns that China, the world's top metals consumer, may further tighten monetary policy. By 1051 GMT, copper for three month delivery MCU3 on the London Metal Exchange fell to $6,680 a tonne from $6,745 at the curb on Friday, according to the LME. It earlier touched a session low at $6,600, a level not seen since Nov. 16 and was on track for a fifth day of declines, its longest losing streak since August 2009. Tin prices CMSN3 fell more than 6 percent to its lowest since Dec 24 2009, chasing a broad sell-off in metals last week, and was set for its biggest one-day fall since early July 2009. [ID:nSGE610019] "It's just a change in sentiment really," said Alex Heath, head of base metals and RBC Capital Markets. "I don't think anybody was under any misapprehension that metals had got ahead of themselves in terms of actual demand and growth ... Trees do not grow to heaven. "You can't have this amount of money flooding around the system without (China) having some kind of tweaking processes going on," he added. "You are still going to have huge growth this year ... it's healthy." China's economy made a strong start to the year, according to a pair of business surveys released on Monday that also underlined the mounting challenge policymakers face to curb inflation. An index based on an official survey of purchasing managers last month eased from a 20-month high in December but remained firmly in expansionary territory, while an index derived from a companion poll by HSBC scaled an all-time high. [ID:nTOE61003S] That comes on the heels of 5.7 percent expansion in the U.S. economy in the fourth quarter, the quickest pace in more than six years, the Commerce Department said. [ID:nN28120005] But some analysts say Chinese concerns are overblown. "With the risks in China still tilted towards inflation and stronger-than-expected growth, despite the shift towards less accommodative policy, the problem in China remains too much demand not too little," Goldman Sachs said in a note. "Given that we have already assumed slowing metals demand growth for China in 2010, this suggests that the risks to Chinese metals demand and our forecasts are likely skewed to the upside rather than to the downside in coming months." Copper fell 8.5 percent last month, in part due to rises in LME inventories, which indicate that demand outside China remains weak. Copper prices rose 140 percent last year. The latest data showed stocks rose 2,475 tonnes to total 543,525 -- their highest since late February 2009. Among other base metals, aluminium MAL3 traded at two-month lows at $2,068 versus $2,080 at the curb on Friday. LME stocks in the metal, used in transport and packaging, fell 625 tonnes but remained near record levels above 4.6 million tonnes. Steel making ingredient nickel MNI3 traded at $18,375 from $18,500 at the curb on Friday, while battery material lead MPB3 was at $2,004.50 from $2,020. Lead earlier touched a low of $1,960, a level not seen since August. Recent rises in cancelled warrants -- material earmarked for delivery -- are under close scrutiny from metals investors for signs of improving demand. On Friday, cancelled warrants for lead were 15,850 tonnes, compared with 11,700 on Jan. 28 and 75 tonnes on Dec 17. LME lead stocks rose 200 tonnes to hit 157,500 tonnes, a level not seen since September 2003. Contract talks between Xstrata (XTA.L) and workers at its main nickel operations in Sudbury, Ontario were also being watched by many traders. See [ID:nLDE6100UA] Zinc MZN3 traded at $2,090.25 a tonne from $2,110 at the curb on Friday, and tin MSN3 was at $16,300 from $17,200. Zinc earlier hit a three and a half month low at $2,074. RBC's Heath said because tin is not traded as much by funds compared to other LME metals, it tends to be more volatile. "It doesn't take too much to do that in tin," he added. Metal Prices at 1059 GMT Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 303.05 -1.55 -0.51 332.75 -8.93 LME Alum 2062.00 -18.00 -0.87 2230.00 -7.53 LME Cu 6668.00 -77.50 -1.15 7375.00 -9.59 LME Lead 1995.00 -25.00 -1.24 2432.00 -17.97 LME Nickel 18200.00 -300.00 -1.62 18525.00 -1.75 LME Tin 16250.00 -950.00 -5.52 16950.00 -4.13 LME Zinc 2083.00 -27.00 -1.28 2560.00 -18.63 SHFE Alu 16190.00 150.00 +0.94 17160.00 -5.65 SHFE Cu* 54380.00 -1050.00 -1.89 59900.00 -9.22 SHFE Zin 17240.00 -155.00 -0.89 21195.00 -18.66 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

Source