(Updates prices, adds quotes) Oct 6 (Reuters) - Copper prices in London slipped on Wednesday as demand worries grew over the possibility of more debt defaults by Chinese property developers. Cash-strapped China Evergrande Group has soured risk sentiment on worries of a wider financial crisis and a potential drag on Chinese construction activities, which consume a large amount of metals. “Fantasia Holdings Group was the latest Chinese developer to fall into crisis after failing to repay a maturing bond. This adds to strains of the nation’s heavily leveraged property firms following Evergrande’s debt woes,” ANZ analysts said in a note. A firmer dollar, fuelled by nervousness that surging energy prices could spur inflation and interest rate hikes, also made greenback-priced metals more expensive to holders of other currencies. Three-month copper on the London Metal Exchange fell 1.1% to $9,069 a tonne by 0620 GMT, aluminium eased 0.3% to $2,912.50 a tonne, nickel declined 0.4% to $18,055 a tonne while lead rose 0.4% to $2,161 a tonne. Also adding pressure was an easing supply disruption threat in Peru, the world’s second-biggest producer of mined copper. Peru’s government said on Tuesday it had reached an agreement with MMG Ltd’s Las Bambas mine and a local community to avoid road blockades that have threatened production at the huge copper mine. Trade was tepid as China is on holiday from Oct. 1-7. FUNDAMENTALS * Brazilian miner Vale SA said on Tuesday the production of copper concentrate at its Salobo mine is suspended due to a fire affecting a conveyor belt. * LME cash nickel was at a $11.50 premium over the three-month contract CMNI0-3, indicating tight nearby supplies as inventories fell in global exchange warehouses. * Nickel inventories in LME warehouses MNISTX-TOTAL fell to 154,440 tonnes, the lowest since December 2019, while ShFE stockpiles of the metal NI-STX-SGH hovered near their record low levels. * For the top stories in metals and other news, click or Reporting by Mai Nguyen in Hanoi; Editing by Krishna Chandra Eluri and Ramakrishnan M. Our Standards: The Thomson Reuters Trust Principles.
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