News: OZL UPDATE 1-METALS-London copper slips amid China holiday, global growth woes

• Pressure on Indonesian, Zambian copper supply to ease
• China markets closed for new year break; to reopen Monday
• Further dollar weakness to support metals

(Adds comment, detail, updates prices)

London copper slipped on Wednesday towards its lowest level in a fortnight as holidays in top consumer China entered a third day, dampening demand, while global growth fears dragged on prices.

Worries about the health of the euro zone banking sector this week have soured sentiment and sparked fresh fears over the global economy, with a very easy monetary policy seen crimping bank profits and consequently the banks' ability to repay debt.

Fears over banking solvency have put paid to the past fortnight's recovery in metals prices, as investors fled into safe-havens, helping the U.S. dollar recover from four-month lows. [USD/]

"We still think the dollar selloff is not yet over and that commodities could push slightly higher over the short-term," said INTL FC Stone in a research note.

European finance ministers will call on the Group of 20 biggest world economies at the end of February to boost global economic growth at a time when a slowdown in China is sending shivers through financial markets.

Souring sentiment towards metals, Big European bank stocks, mired by a seemingly endless list of investor concerns, are being sold-off more brutally than they were at the start of the financial crisis in 2008.

Three-month copper on the London Metal Exchange CMCU3 edged down 0.1 percent to $4,503 a tonne by 0251 GMT, extending 2.2 percent losses from the previous session. Prices struck $4,466.50 a tonne on Tuesday, the weakest since Jan. 26.

The Shanghai Futures Exchange SCFcv1 is closed for Lunar New Year celebrations and will reopen on Monday.

In news that douses hopes a copper price recovery could come from cuts to supply in the near term, Zambia, Africa's second-largest copper producer, scrapped a nearly 73 percent hike in electricity tariffs for industrial and commercial users, state power firm Zesco said.

Indonesia's mining ministry has also recommended that Freeport McMoRan Inc receive a new six-month copper export permit, potentially ending a near two-week stoppage after the previous permit expired last month.

Meanwhile, Australia's OZ Minerals Ltd (OZL) is set to announce plans for a new copper project after a board meeting on Feb. 25, the Australian miner said on Wednesday, after reporting a near tripling in annual net profit in line with market forecasts.

PRICES

	Three month LME copper		  CMCU3  
	Most active ShFE copper		 SCFcv1  
	Three month LME aluminium	   CMAL3  
	Most active ShFE aluminium	  SAFcv1  
	Three month LME zinc			CMZN3  
	Most active ShFE zinc		   SZNcv1  
	Three month LME lead			CMPB3  
	Most active ShFE lead		   SPBcv1  
	Three month LME nickel		  CMNI3 
	Most active ShFE nickel		 SNIcv1   
	Three month LME tin			 CMSN3  
	Most active ShFE tin			SSNcv1