METALS-Copper retreats from 13-mth high on dollar bounce

* Copper stocks at highest since May

* Aluminum at 2-month high

* Zinc at 17-month peak, Century problems support

(Recasts, updates with New York closing copper prices, adds
analyst comments and NEW York to dateline)

By Chris Kelly and Michael Taylor

NEW YORK/LONDON, Oct 26 (Reuters) - Copper prices closed lower
on Monday, coming under pressure from a late rally in the U.S.
dollar that helped drag the metal away from 13-month highs, despite
earlier support from data showing hefty imports of the metal into
China.

Copper for December delivery HGZ9 on the New York Mercantile
Exchange's COMEX division dipped 2.35 cents to end at $3.0110 a lb,
after dealing between $2.9875 and $3.0690, its highest level since
late September 2008.

On the London Metal Exchange (LME), copper for three-months
delivery MCU3 closed down $36 at $6,613 a tonne. Earlier, the
metal used in power and construction rose to $6,732, another
13-month peak.

The initial burst of buying came in response to data showing
Chinese copper imports jump nearly 30 percent in September to
282,828 tonnes. The stronger level of imports fanned bullish
sentiment that the world's biggest copper consumer would continue to
draw in metal at a phenomenal rate. [ID:nBJI000173]

September's inflow was the fifth highest on record.

"The Chinese copper data was very positive and anything that is
positive in copper tends to ripple out across the other metals,"
said David Wilson, director of metals research, Societe Generale.
"Consumption in China is racing ahead."

But that momentum waned as the dollar rallied from a 14-month
low against the euro EUR=, making dollar-denominated metals less
attractive for non-U.S. investors.

"Copper is totally dependent on the continued economic
expansion, and we start to see the overall perception that the
expansion is going to stall out or interest rates are going to start
coming up, China alone can't take it higher," said Frank McGhee,
head precious metals trader with Integrated Brokerage Services LLC
in Chicago.

Additional concerns were reflected in rising LME stocks, which
at 368,850 tonnes are at their highest since mid-May. Latest data
showed LME stocks rose 1,775 tonnes.

For graphics showing global exchange metals stocks,
[ID:nSP471674]

Still, supply-side issues were likely to keep prices supported,
with a work stoppage at Chile's Spence copper mine now in its 14th
day. [ID:nN26181800]

Sentiment has also been boosted by some supportive macroeconomic
data, including Friday's upbeat U.S. existing home sales and
bigger-than-expected rise in new industrial orders in the Eurozone
in August. [ID:nN2390489] [ID:nLN271815]

SUPPLY FEARS FUEL ZINC

Zinc, which jumped over 10 percent last week, saw continued
support from an outage at Chinese-owned Century zinc mine in
Australia after the failure of a pipeline carrying concentrate from
the mine to port.

The metal MZN3 closed at $2,315 from $2,273, having earlier
touched $2,365.75, its highest since May 2008. It is on course for a
20 percent rise this month, its strongest since October 2006.

Repairs were expected to take another two or three weeks.

The operation also reported a 9 percent fall in output in the
September quarter due to a change in the mine plan. [ID:nSYD483255]

For more on zinc, click on [ID:nLN320526]

Aluminum MAL3 closed at $1,998 from $1,972. The metal used in
transport and packaging touched a day's high of $2,028, its highest
since late August.

Battery material lead MPB3 was untraded in LME rings but was
last bid at $2,310 from $2,360, while tin MSN3 was at $15,255 from
$15,145. Nickel MNI3 closed at $18,650 from $18,950.

Metal Prices at 1902 GMT
Metal Last Change Pct Move End 2008 Ytd Pct

move
COMEX Cu 299.95 -2.45 -0.81 139.50 115.02
LME Alum 1983.00 11.00 +0.56 1535.00 29.19
LME Cu 6540.00 -109.00 -1.64 3060.00 113.73
LME Lead 2280.00 -80.00 -3.39 999.00 128.23
LME Nickel 18600.00 -350.00 -1.85 11700.00 58.97
LME Tin 15050.00 -95.00 -0.63 10700.00 40.65
LME Zinc 2289.00 16.00 +0.70 1208.00 89.49
SHFE Alu 15270.00 160.00 +1.06 11540.00 32.32
SHFE Cu* 51860.00 530.00 +1.03 23840.00 117.53
SHFE Zin 17260.00 480.00 +2.86 10120.00 70.55
** 1st contract month for COMEX copper * 3rd contract month for
SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
(Additional reporting by Rebekah Curtis in London; Editing by
Marguerita Choy)