METALS-Copper ends up on dollar weakness, inventories up

* LME copper stocks extend rise above 400,000 tonnes

* LME nickel stocks soar to highest since 1995

* Unexpectedly weak U.S. data weighs on dollar (Changes headline, adds NEW YORK to dateline, recasts, updates with New York closing copper prices, adds analyst comments)

By Chris Kelly and Michael Taylor

NEW YORK/LONDON, Nov 13 (Reuters) - Copper strengthened into the close on Friday as extended losses in the dollar and a firmer tone in equity markets fed the gains and kept prices bumping along the upper end of the range, despite persistent demand concerns from rising inventories.

"The consolidation is narrowing from what we have seen over the last month," said Tom Hartman, broker with Altavest Worldwide Trading in Mission Viejo, California. "Even though supplies are at higher levels, within this consolidation the market has held steady."

Copper for December delivery HGZ9 on the New York Mercantile Exchange's COMEX division rose 2.50 cents to close at $2.9725 a lb, near the upper end of its $2.9310 to $2.9745 session range.

On the London Metal Exchange (LME), benchmark copper for three months delivery MCU3 ended up $17 at $6,520 a tonne.

Copper benefitted from the dollar, which fell across the board after unexpectedly weak trade deficit and consumer sentiment figures stoked worries about the outlook for a U.S. economic recovery. [ID:nN13463684] [.N]

The currency-related buying helped offset bearish imventory data showing LME copper stocks climb 1,500 tonnes to 403,625 tonnes, the highest since late April. In Shanghai, warehouse copper stocks hit a new 5-1/2 year high. [ID:nSHA117888]

"Investors are concerned over the strength of the global recovery, especially in the U.S., and the sustainability of record-setting Chinese imports," said Bart Melek, Global Commodity Strategist with BMO Nesbitt Burns, in a research report. "These concerns seem to be reinforced by a rise in LME and Shanghai inventories, which may be interpreted to imply that the scarcities of the metal in the Chinese domestic market are easing and that less imports are likely going forward."

Supply-side issues offered additional support, with a prolonged strike at Chile's Spence copper mine feeding concerns about a potential supply short-fall. [ID:nN12429456]

A majority of the striking 1,500 miners at Zambia's Konkola Copper Mines (KCM), a unit of London-listed Vedanta Resources Plc (VED.L) resumed work on Friday. [ID:nWEA1119]

Chile's Codelco, the world's biggest copper miner, said it expects the economic rebound in the United States and Europe to help support copper demand next year. [ID:nN13441855]

NICKEL STOCKS SOAR

Nickel MNI3 ended at $16,200 a tonne from $16,190 on Thursday, when it hit $15,975, its lowest since late July.

Stocks of nickel on the LME edged up 18 tonnes to total 131,748 -- a level not seen since early 1995, putting a further dampener on demand prospects.

But helping limit losses, China's state-backed research group Antaike said on Friday the country's real consumption of nickel may be higher than expected. China is the world's largest metals consumer. [ID:nHKG80108]

"Nickel has been hit by high stocks ... there are some bearish supply side developments," said Calyon analyst Robin Bhar.

Among other industrial metals, aluminum MAL3, used in transport and packaging, closed at $1,940 a tonne from $1,948.

Latest data showed LME stocks fell 2,725 tonnes to total 4.5 million tonnes, extending a recent trend of moves away from record high stockpiles.

But in China, traders and smelter sources said privately held stocks of primary aluminum may have increased more than 40 percent from August to about a million tonnes. [ID:nHKG20357]

Zinc MZN3 ended at $2,174 a tonne from $2,150, with LME stocks climbing 950 tonnes to total 425,200 tonnes and Shanghai stocks up 7,857 tonnes from a week earlier.

Battery material lead MPB3 closed at $2,275 versus $2,260, while tin MSN3 ended at $14,750 from $14,650.

Metal Prices at 1930 GMT Metal Last Change Pct Move End 2008 Ytd Pct

move COMEX Cu 296.85 2.50 +0.85 139.50 112.54 LME Alum 1952.00 4.00 +0.21 1535.00 27.17 LME Cu 6542.75 39.75 +0.61 3060.00 113.82 LME Lead 2272.50 12.50 +0.55 999.00 127.48 LME Nickel 16225.00 35.00 +0.22 11700.00 38.68 LME Tin 14770.00 45.00 +0.31 10700.00 38.04 LME Zinc 2186.50 36.50 +1.70 1208.00 81.00 SHFE Alu 15145.00 -5.00 -0.03 11540.00 31.24 SHFE Cu* 51020.00 -20.00 -0.04 23840.00 114.01 SHFE Zin 17140.00 190.00 +1.12 10120.00 69.37 ** 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 Maytaal Angel in London; editing by Anthony Barker and Jim Marshall)