Asia Metals-Premiums fall, higher prices deter buyers

* Copper premiums slide 50 pct in Asia as prices rally * China selling excess material, heading to LME By Nick Trevethan SINGAPORE, Oct 30 (Reuters) - Physical metals premiums in Asia have tumbled in the past two weeks on falling consumer interest after steep rallies in industrial raw material prices. Premiums for physical copper in Singapore have fallen by about half after prices of the metal jumped to their highest in around a year, while aluminium premiums in the city-state dropped by a third. "It's all about price. The Chinese aren't buying anything, in fact they are unloading excess material," a merchant in Singapore said. Premiums for copper in South Korea ran at about $20 above the London Metal Exchange cash price while in Singapore cathode was available at $25, versus $55 at the start of the month. But spreads remain wide with some material offered as high as $65. "People are offering to buy metal at $30 with very few takers, while those with material to sell won't do business below $70," a trader in Shanghai said. Spot copper in Shanghai at 50,775 yuan ($7,436) a tonne, is trading well above the benchmark third-month futures contract on the Shanghai Futures Exchange at 51,320 yuan, a discount of 545 yuan, highlighting an abundance of metal. At the same time the discount for Shanghai futures versus the LME, at around 1,600 yuan accounting for VAT was another sign of the surfeit. China, the world's biggest copper consumer and a huge importer surprised markets this week with a near-30 percent rise in refined imports for September, but traders also noted exports of the metal rose. "The Chinese are offering to sell big clips. They are off-loading any excess and my customers seem pretty well stocked until February or March," the Singapore merchant said. Almost 11,000 tonnes of copper flowed out of China in September more than a third of the total in the first nine months of the year and with the wide negative arbitrage October's trade data was expected to show further exports. Much of the material will land in warehouses in South Korea. Copper stocks in Busan more than doubled in September to 45,650 tonnes and then rose by almost 10,000 tonnes in October. Copper stocks in LME warehouses across Asia stand at 68,450 versus 59,725 tonnes two weeks ago, equivalent to 18.4 percent of the total in the exchange's warehouses. Aluminium in Singapore was offered at around $60/80 versus $100 mid-month, and again dealers said high prices were deterring buyers. Zinc was available for between $30-$45 for Brazilian and Indian brands while lead was quoted at $75/$80. Tin premiums were $20, while full plate nickel was just $60 versus $100 early this month. (Editing by Jeremy Laurence)