* Chinese doubts remain despite improving manufacturing data

* Weak fundamentals could fuel base metal price corrections


LONDON, Sept 1 (Reuters) - Copper slipped more than 3
percent on Tuesday as investors worried about the pace of the
economic recovery in China, while analysts warned that prices
had run ahead of weak fundamentals.

Shares in Shanghai plunged nearly 7 percent in the
previous session -- their worst one-day loss since mid-2008 --
on persistent fears the government is reining in bank lending to
head off potential asset bubbles.

By 0937 GMT, copper for three month delivery on the
London Metal Exchange fell to $6,292 a tonne from $6,475 at the
close on Friday and compared with a session low at $6,255. The
London Metal Exchange was closed on Monday for a bank holiday.

Prices of copper, used in power and construction, have more
than doubled this year, due in part to stockpiling efforts from
China -- the world's largest metals consumer.

"We've run ahead of ourselves a bit," Andrey Kryuchenkov, an
analyst at VTB Capital. "We can't trade on sentiment all the
time. We know the global economy is recovering ... but copper is
completely overheated."

"We need to pull back to see real physical demand kick-in in
the fourth quarter," he added. "Stock levels are still rising."

Improving macro data and speculative buying on expectations
of an economic recovery, has boosted prices in recent months.

Highlighting the improving economic outlook, China's vast
manufacturing sector kept up its steady recovery last month, a
pair of surveys showed. [ID:nPEK62430]

Analysts however, remain wary of the multi-month highs hit
by many industrial metals, with fundamentals still fragile.

"A correction is imminent on base metals," said Eugen
Weinberg, analyst at Commerzbank. "The lofty price levels we're
on right now, are quite ahead of fundamentals."

Highlighting underlying weak demand across industrial
metals, copper stocks rose 1,025 tonnes to 299,950 tonnes -- the
highest level since June.

Aluminium fell $26.75 to $1,873.25. LME stocks in the
metal, used in transport and packaging, fell 1,400 tonnes but
remained at record levels above 4.6 million tonnes.

Nickel, steel making ingredient traded at $18,500 from
$19,030

Lead, battery material was at $2,100.25 from
$2,107.

Lead prices are being closely watched by traders, after
China widened its industry checks due to a series of possible
poisonings. [ID:nPEK84712]

Zinc dropped to $1,837 a tonne from $1,881 and tin
edged lower to $13,610 from $14,100.

Investors in tin, used in electrical solder, remain
concerned about the backwardation on the September-December 2009
period, which has seen September trade at a significant premium
to December. [ID:nL6246168]

Worries remain about nearby supplies for both tin and
nickel, which have pushed the premium for cash material over the
three-month contract to around $335 and $75 a tonne
respectively.

But with a busy economic calendar ahead, investors will eye
U.S. construction, manufacturing and retail numbers, for further
direction.

VIENNA - Oil prices rose slightly to above $70 (U.S.) a barrel Tuesday as a rebound in Asian stocks boosted investor optimism.

Benchmark crude for October delivery was up 38 cents at $70.34 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The contract Monday lost $2.78 to settle at $69.96 after a drop in stocks heightened investor concerns that the global economic recovery may be weaker than expected. China's benchmark stock index fell 6.7 per cent Monday while the Dow Jones industrial average fell 0.5 per cent.

	24 Hour Base Metals