July 20, 2015 / 2:37 AM / 5 years ago

METALS-London copper slinks back towards six-year lows

* HKEx reaches resolution over warehouse lawsuits

* COMEX speculators cut copper shorts in latest week - CFTC

* Coming Up: Euro zone Current account for May at 0800 GMT (Adds detail; updates prices)

By Melanie Burton

MELBOURNE, July 20 (Reuters) - London copper slipped to its lowest level in nearly a fortnight on Monday, trending towards six-year lows in the face of ample supply, stuttering demand growth in top user China and a stronger dollar.

Three-month copper on the London Metal Exchange fell to $5,429 a tonne before paring loses to trade flat at $5,476 by 0723 GMT. On July 8, prices hit a six-year low of $5,240 a tonne.

Shanghai Futures Exchange copper fell 1.7 percent to 39,800 yuan ($6,409) a tonne.

“It’s all looking soggy.” said Jonathan Barratt, chief investment officer at Sydney’s Ayers Alliance.

“I really want to see an improvement in economic activity as proof that China’s stimulus is having an effect but right now we just haven’t gotten that performance.”

China’s stronger-than-expected second quarter economic growth and a pick up in some property prices last week offered optimism for prices and demand for copper from the construction sector later in the year.

However, the price outlook in the near term was more downbeat, given China’s consumption tails off over the northern hemisphere summer, while an ongoing credit crunch has cut back capital for purchases.

China stocks erased early losses and ended higher on Monday, after the country’s securities regulator reaffirmed its support for the market, denying a media report that the government was studying how to end its bailout.

Hedge funds and money managers reduced their bearish position in copper for the first time since turning net short in early June, in the week ended July 14 U.S. Commodity Futures Trading Commission data showed on Friday.

The U.S dollar held broad gains in Asia on Monday as investors looked ahead to higher interest rates from the Federal Reserve. U.S. consumer prices rose for a fifth straight month in June, further signs of firming inflation that strengthen the case for an interest rate hike this year.

A stronger dollar ramps pressure on commodities which become more expensive for buyers holding other currencies.

Gold hit five-year lows and oil prices were looking fragile, given a glut of supply. Further deterioration would likely trigger selling in base metals, Barratt added. Oil prices held steady in early Asian trade on Monday.

Greeks queued outside banks on Monday as they reopened three weeks after closing to stop the system collapsing, the first cautious sign of a return to normal after a deal to start talks on a new package of bailout reforms.

Hong Kong Exchanges & Clearing Ltd (HKEx) said on Sunday it had settled two class-action lawsuit complaints against itself and subsidiary the London Metal Exchange (LME) over allegations of anti-competitive and monopolistic behaviour.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

$1 = 6.2096 Chinese yuan Reporting by Melanie Burton; Editing by Anand Basu and Michael Perry

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