METALS-Copper propelled by weak dollar, inventories worries


* Broadly weaker dollar gives base metals a lift

* Inventory levels highlight poor demand, fundamentals


LONDON, Sept 22 (Reuters) - Copper rose on Tuesday as dollar
weakness boosted industrial metal prices, although concerns
about rising London Metal Exchange inventories limited gains.

By 0906 GMT, copper for three month delivery on the
London Metal Exchange climbed to $6,265 a tonne from $6,190 at
the close on Monday.

But the dollar eased before a two-day Federal Reserve
meeting on U.S. interest rates, making commodities less
expensive for holders of other currencies. [USD/]

"Given that Chinese import data for most metals is down
month on month (as expected), the market is going to ignore that
and follow the dollar," said David Wilson, director of metals
research at Societe Generale.

China is the world's largest metals consumer, with
stockpiling efforts combined with investor cash helping to
double copper prices this year.

Analysts are wary of base metal price weakness in the coming
weeks, however, with many looking to the fourth quarter and 2010
for a real upswing in demand.

"A lot of investors have an eye on next year and that will
be broadly supportive of prices," Wilson added. "When we start
coming into the fourth quarter, providing we continue to see
positive data releases, then I see every reason for prices to be
supportive."

In addition to the U.S. Fed meeting on monetary policy, a
summit of G20 countries in Pittsburgh later this week may also
offer direction.


INVENTORY WORRY

The amount of industrial metals stored in LME warehouses
continues to weigh on sentiment, with investors concerned that
prices may have over run the poor fundamental outlook.

Copper stocks fell 50 tonnes to 331,775 tonnes, to remain
near levels not seen since late May. Stocks have now gained
about 30 percent since the middle of July.


Aluminium rose $16 to $1,900. LME stocks for the
metal, used in transport and packaging, fell 4,825 tonnes but
remain at near record levels above 4.6 million tonnes.

Imports of primary aluminium to China, the world's top copper
and aluminium consumer, dropped to 117,213 tonnes in August from
131,724 tonnes in July. [ID:nBJI000197]

Nickel, Steel making ingredient traded at $17,671 from
$17,400 while battery materia .

Lead was at $2,254 from$2,215.

Zinc traded at $1,957.50 a tonne from $1,919

Tin edged up to $14,725 from $14,450.