BEIJING, March 10 (Reuters) - Copper prices slid on Friday, heading for weekly losses as fears over persistent interest rate hikes by the U.S. Federal Reserve weighed on investor sentiment, while improving supply prospects added downward pressure on the market.

Three-month copper on the London Metal Exchange was down 0.7% at $8,793.50 a tonne by 0727 GMT. It has lost 2.1% this week.

The most-traded April copper contract on the Shanghai Futures Exchange ended the day trading 0.7% lower to 68,810 yuan ($9,877.13) a tonne.

Federal Reserve Chair Jerome Powell's remarks about upcoming interest rate hikes aimed at fighting stubbornly high inflation exacerbated concerns over economic activities and global demand of industrial metals.

Investors are awaiting U.S. non-farm payrolls and unemployment data due at 1330 GMT.

The hawkish Fed and weak February consumption data in China weighed on sentiment, with most risky asset classes suffering from a risk-off tone, and the higher than expected output added to the malaise, analysts at ANZ Research said in a note.

China, the world's top copper smelter, produced 907,800 tonnes of refined copper in February, up 6.5% on-year and slightly higher than the expected 900,000 tonnes, according to Shanghai Metals Market, anticipating March output to reach 949,500 tonnes.

Improved situations in Peru, Indonesia and Panama also eased worries over copper supply, although Fitch Ratings warned on Thursday that mining companies in Peru could face "material risk" due to extended protests and blockades.

Apart from improving supplies, demand in China is gradually picking up, reflected by a decline in stocks, participants said.

Copper stocks in SHFE warehouses ticked down for a second consecutive week to 214,972 tonnes on Friday, 10.8% less comparied with last Friday.

LME aluminium shed 0.7% to $2,311 a tonne, zinc dropped 1.3% to $2,934, lead dipped 0.3% to $2,078.50 and tin fell 2.2% to $22,830 a tonne.

SHFE aluminium lost 1.4% to 18,265 yuan a tonne, nickel fell 4% to a four-month low at 179,670 yuan, zinc slid 1.6% to 22,870 yuan, lead eased 0.2% to 15,155 yuan, and tin lost 3.8% to 186,950 yuan.

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($1 = 6.9666 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; Editing by Rashmi Aich and Varun H K)