CORRECTED - UPDATE 3-Copper slips on weak demand, aluminium near highs

(Corrects second paragraph to make clear dollar stronger not
weaker)

* Aluminium close to three-month high

* Copper touches one-month high in early trade

* Strong dollar weighs on metals but supply concerns support

(Recasts with prices, comment, changes dateline, pvs SINGAPORE)

By Humeyra Pamuk

LONDON, June 23 (Reuters) - Copper came under pressure on
Monday after data showed weak demand from China while aluminium
hovered close to its highest level in three months, traders and
analysts said.

A strong dollar also weighed on industrial metals, making
them more expensive for local currency holders, but analysts
said "window dressing activity" -- when investors buy to keep
prices high ahead of a quarter's end -- capped possible losses.

Copper for three-months delivery on the London Metal
Exchange MCU3 touched $8,490 per tonne, its highest since May
19 and was at $8,410/8,430 per tonne by 0909 GMT, down $25 from
Friday's close.

"You could argue that it's surprising how well copper's been
doing given that Chinese thirst is so much less than it was,"
said analyst Nick Moore, referring to Chinese imports data.

The world's top consumer's refined copper imports fell 26.4
percent on the month and 19 percent on the year in May on the
back of strong international prices. [ID:nHKG210014]

Copper prices hit a record high of $8,880 per tonne in
mid-April because of a strike at the world's top copper producer
Codelco. Prices now trade at a discount of around 5 percent to
that level.

Lack of demand from China, where the investors look to take
up for the slack amid a slowdown in the United States, have been
sluggish -- dragging down the copper prices.

But the low level of inventories prevent big bets.

"With copper, the market's very, very wary about shorting it
as the inventories are very low and a strike or any disruption
could push it back up," an LME trader said.

In currency markets, the euro was hit by contraction in the
euro zone's manufacturing and service sectors, while the dollar
benefited as some investors bet on a hawkish message from the
Fed.

NO SHORTAGE

Aluminium MAL3 edged down by $10 to $3,140/3,150, after
touching $3,169 per tonne, its highest since March 14.

"The market's perhaps looking further ahead and wondering
whether there's likely to be greater loss of capacity due to the
power problems," analyst Nick Moore at ABN Amro said.

Aluminium prices have gained more than 10 percent since
early June due to power supply and production disruptions.

Aluminium producer Alcoa Inc (AA.N) said on Thursday it
would temporarily idle half the production at its Rockdale,
Texas, smelter because of local power supply problems.
[ID:nWNAS8779]

However, several traders and analysts said the rally was
overdone as there was plenty of aluminium around. LME data
showed a hefty rise of 5,950 tonnes in aluminium inventories.

"The stock rise reminds us there's no shortage of material
available," Moore said.

And although some analysts said LME aluminium may challenge
the record traded peak of $3,310 hit in May 2006, especially if
power problems in China escalate, LME broker Triland Metals was
more cautious.

"The whole move takes place in a contango market showing
there is ample supply as we see more stocks entering LME
warehouses. This makes one wonder how sustainable this rally can
be."

Zinc MZN3 edged down $5 to $1,940/1,960, after rising as
high as $1,980.

"The zinc market could take some comfort from the Chinese
data," ABN's Moore said.

Lead MPB3 was down $25 to $1,855/1,865 per tonne while
nickel MNI3 edged down $40 to $22,360, and tin MSN3 was up
$450 at $23,150/23,450 from a last quote of $22,700/22,800.

Metal Prices at 0950 GMT
Metal Last Change Pct Move End 2007 Ytd Pct

move
LME Cu 8415.00 -20.00 -0.24 6670.00 26.16
SHFE Cu* 62700.00 210.00 +0.34 56880.00 10.23
LME Alum 3135.00 -15.00 -0.48 2403.00 30.46
SHFE Alu* 19325.00 -20.00 -0.10 18180.00 6.30
COMEX Cu** 383.20 0.00 +0.00 303.05 26.45
LME Zinc 1940.00 -5.00 -0.26 2370.00 -18.14
SHFE Zinc* 16435.00 385.00 +2.40 18950.00 -13.27
LME Nick 22315.00 -85.00 -0.38 26350.00 -15.31
LME Lead 1845.00 -35.00 -1.86 2550.00 -27.65
LME Tin 23150.00 750.00 +3.35 16400.00 41.16
** 1st contract month for COMEX copper
* 3rd contact month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07

(Additional reporting by Nick Trevethan in Singapore;
editing by Christopher Johnson)