By Julie Crust LONDON (Reuters) - Copper and aluminium fell around 2 percent on Wednesday as the market mood worsened after the world's biggest miner BHP Billiton said it was slashing 6,000 jobs due to global recession. BHP, which until now had set itself apart from other miners by maintaining output, said it would close its giant Ravensthorpe nickel mine in Australia, writing off $1.6 billion, as it battles a collapse in commodity prices. Inventories for copper and aluminium continued to grow with a jump in aluminium taking the metal's stock level close to record highs. "Aluminium fundamentals are extremely weak," said analyst Michael Widmer at BNP Paribas. "Producers have moved towards cutting output yesterday...but there is so much surplus metal around in the world that is making its way into the warehouses." Aluminium inventories in London Metal Exchange warehouses jumped 88,975 tonnes, the largest one-one day surge since December 18, to above 2.64 million tonnes, within sight of the record high seen in June 1994. Three-month aluminium on the LME fell as much as 2.0 percent to $1,371.75 a tonne, close to the lowest price since July 2003. At 1153 GMT it was trading at $1,375 compared with $1,400 on Tuesday. Alcan, a unit of Rio Tinto and the world's second biggest aluminium producer, plans to cut another six percent of output and shed 1,100 employees, the firm said on Tuesday. Copper slipped 2.6 percent to a low of $3,256.50 a tonne as inventories in LME warehouses hit their highest level since January 2004 after jumping 8,375 tonnes to 417,475 tonnes. . At 1154 GMT copper traded at $3,288.50 compared with its close of $3,342 on Tuesday. PRODUCTION CUT BACKS Falling base metal prices due to a slump in demand have forced miners to scale-back production and downsize. BHP's decision was the latest in a series of production cuts announced by the major mining companies but it failed to support nickel prices. Nickel fell to $11,150 a tonne from $11,550 at the close. Anglo American said on Tuesday it temporarily halted production at its biggest nickel mine in Venezuela. Production cuts have so far failed to keep pace with the drop in industrial metals demand. "Consumption in China will temporarily cool with most firms having finished their purchases ahead of the Lunar New Year holidays," said Wang Danping, an analyst at Jinrui Futures. Market watchers are waiting for China's fourth-quarter gross domestic product data later this week for further signs of the economic health of one of the top users of industrial metals. China's economy in the fourth quarter probably grew 7 percent from a year earlier, posting its weakest expansion in nearly a decade, according to a recent Reuters poll of 28 economists. Metal prices are expected to fall further as they take a cue from lower equity markets and indications of slower economic growth, Fairfax said in a research note. Wall Street ushered in the Barack Obama presidency with a record Inauguration Day drop on Tuesday amid fresh signs the global bank crisis was far from over, and European shares were down early on Wednesday. Lead fell to a low of $1,115 from $1,165 a tonne, zinc to $1,190 from $1,250, and tin to $11,100 from $11,300. | 
