May 17 (Bloomberg) -- Copper futures fell in London for a fifth day partly on concern stockpiles in China, the world's largest consumer, are increasing as global demand wanes.

``There was talk'' China's State Reserve Bureau was selling copper in the market, Yuan Zhaohui, deputy general manager of Shenzhen Star Futures Co., said today in a phone interview from Shanghai. Shanghai Futures Exchange may announce gains in copper stockpiles in its weekly report on May 20, according to Wang Zheng, an analyst at Shanghai Dalu Futures.

``There are signs that demand is slow,'' said Marc Bonter, an analyst at metals consultant CRU, a London-based commodities research company. ``Prices in Shanghai were higher than in London in April and that could trigger more imports into China.''

Copper for delivery in three months dropped $10, or 0.3 percent, at $2,980 a metric ton as of 9:22 a.m. on the London Metal Exchange. The contract fell earlier to $2,960, the lowest since Feb. 3. It has declined 5.2 percent this year.

Copper futures for July delivery, the most actively traded contract on the Shanghai Futures Exchange, fell 470 yuan, or 1.5 percent to end the day at 30,560 yuan a metric ton ($3,692), the lowest since March 4.

Copper for immediate delivery in China increased 5.8 percent in the past month to a record 37,990 yuan ($4,590) a ton on May 10. That may have drawn as much as 110,000 tons of imports into China in the past two weeks, according to traders such as Qiao Sihua at Shenzhen Star Futures in Shanghai.

Copper inventories monitored by the London exchange fell 1.6 percent to 54,175 tons, the LME reported today. This year, LME- monitored stocks have risen almost 11 percent, following an 88 percent decline last year.

Among other LME-traded metals for delivery in three months, aluminum rose $8, or 0.5 percent, to $1,723 a ton. Nickel fell $95, or 0.6 percent, to $16,055 while lead lost $1, or 0.1 percent, to $926. Zinc was up $1 at $1,225. Tin wasn't traded.

To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net

Last Updated: May 17, 2005 04:57 EDT