METALS-Copper slips after China imports drop

* Copper down as China worries eclipse weaker dollar

* Stocks of copper rise, aluminium inventories fall

LONDON, Sept 23 (Reuters) - Copper prices dipped on
Wednesday, as investors fretted about signs of faltering demand
from major consumer China.

Copper for three-months delivery on the London Metal
Exchange traded at $6,208 a tonne at 0938 GMT from a close of
$6,270 on Tuesday.

Buying by the world's top copper consumer has helped prices
of the metal used in power and construction more than double so
far this year as the global slowdown stifled OECD demand.

China's imports of refined copper in August fell by
one-quarter versus the month before, as expected, a second
consecutive monthly decline as rising domestic stocks and weak
prices brought a halt to record buying. [ID:nHKG189580]

"The market is worrying that stronger OECD demand won't come
in time to offset the slowdown in Chinese imports," said
Barclays Capital analyst Gayle Berry.

"We'll see Chinese imports continue to fall over the next
couple of months. The State Reserves Bureau is not buying and
consumers have restocked in China now. That's a finite process
and it's pretty much run its course."
Worries about falling Chinese imports eclipsed a weaker
dollar, which hovered near a one-year low against a currency
basket. A weaker U.S. currency is usually supportive for
industrial metals as it makes dollar-priced material cheaper for
holders of other currencies. [USD/]

STOCKS RISE

Stocks of copper at LME warehouses rose 175 tonnes to
331,950 tonnes. Inventories have been trending higher since
early July, reversing a trend of nearly constant falls earlier
in the year,

Highlighting concerns about rising inventories, China may
hold nearly 1.2 million tonnes of refined copper stocks, about
80 days of consumption, an analyst at a state-backed research
group estimated. [ID:nHKG326569]

Aluminium , used in transport and packaging, was at
$1,870 from $1,889. Stocks of aluminium at LME warehouses
dropped 4,250 tonnes but stood just below a record high above
4.6 million tonnes.

Zinc was at $1,918 from $1,946 and battery material
lead was at $2,250 from $2,289.

Tin was at $14,650 from $14,650. The backwardation on the
metal -- a premium for cash material over three-month
delivery -- shot up to $720/740, versus $260 on Sept.17.

A dominant position holding more than 90 percent of tin at
LME warehouses, according to latest data, is helping to boost
the backwardation.

"There is this significant position holder that has been
carrying positions as high as 90 percent of the warrant
holdings," said Alex Heath, head of base metals at RBC Capital
Markets.

"When you have a situation like this in a market that is
illiquid, one large player does stand out."

Nickel was at $17,950 from $17,750.