LONDON, Sept 6 (Reuters) - Copper prices slipped on Wednesday after the currency of biggest metals consumer China slumped and German factory orders dropped, highlighting a weak global economy.
Three-month copper on the London Metal Exchange was down 0.6% at $8,438 per metric ton by 0930 GMT after rising by 0.4% on Tuesday.
LME copper has recovered since touching a 2-1/2 month low of $8,120 in mid-August on hopes for Chinese stimulus, but investors have been disappointed over modest support measures.
China's yuan fell to a 10-month low against a buoyant dollar before paring some losses after weak economic data from the world's second-biggest economy. Chinese services activity expanded at the slowest pace in eight months in August, data showed on Tuesday.
"We've had that fresh attempt to weaken the renminbi overnight - the correlation to copper is higher than the dollar to copper," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
"Also those factory orders from Germany were pretty dismal which highlights the current headwinds for the market."
German industrial orders fell more than expected in July, sliding by 11.7% while analysts had expected a fall of 4.0%.
The most-traded October copper contract on the Shanghai Futures Exchange ended day-time trade 0.4% higher at 69,490 yuan ($9,504.60) per ton.
The dollar index held close to a six-month peak, making it more expensive to buy greenback-priced commodities for non-dollar holders.
Autumn traditionally sees better demand for copper in China, the metal is used in construction, power and transportation sectors, but actual consumption remained tepid, a Chinese copper rod producer said.
"There isn't any improvement in demand as we enter September, it's even worse compared with a year earlier."
China's trade data due on Thursday was also in focus. A Reuters' poll showed the country's exports and imports in August are likely to contract more slowly.
LME aluminium rose 0.6% to $2,205 a metric ton, while zinc shed 0.3% to $2,465, lead dipped 0.1% to $2,230.50, nickel eased 1.1% to $20,810 and tin fell 0.3% to $26,365.
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($1 = 7.3112 Chinese yuan renminbi) (Reporting by Eric Onstad Additional reporting by Siyi Liu in Beijing, Editing by Louise Heavens)
