METALS-Copper settles down on stronger dollar, stockpiles

* Copper stocks up again, highlighting still weak demand

* Aluminum stocks surge nearly 36,000 tonnes

* Dollar rebounds, equities fall, weighing on metals
(Updates with closing prices)

By Chris Kelly and Michael Taylor

NEW YORK/LONDON, Nov 19 (Reuters) - Copper prices ended lower
on Thursday, pulling back from 14-month highs amid a recovery in
the dollar from recent lows and as concerns grew that prices are
running ahead of weak fundamentals.

Copper for December delivery HGZ9 on the New York Mercantile
Exchange's COMEX division fell 2.95 cents to close at $3.0810 a
lb, backing away from Wednesday's session peak at $3.1720, its
highest level since late September 2008.

On the London Metal Exchange (LME), benchmark copper MCU3
ended at $6,790 a tonne, down $90 from the close on Wednesday,
when the metal used in power and construction hit a peak of $6,992
-- another high dating back to late September 2008.

"We've moved up a tremendous amount in the last three days,"
said Justin Lennon, an analyst at Mitsui Bussan Commodities in New
York. "It's all this sideline money that wants to get into
commodities."

"Copper inventories are increasing. Prices can get ahead of
themselves ... commodities are a little bit in uncharted waters,
making it very volatile," he added. "We're expecting some weakness
in December but it's possible that we could get through the
$7,000-level before the end of the year."

Mixed economic data in the United States and an analyst
downgrade of the semiconductor sector industry weighed on the
broader market and added to a growing anxiety over the economic
outlook, traders said. [.N]

The Conference Board said its index of leading economic
indicators climbed less than expected in November, while the
Philadelphia Federal Reserve Bank said its business activity index
rose to a two-year high in November. [ID:nN19409318]

"I think there is just a lot of renewed anxiety out there
now," said Matthew Zeman, head of trading with LaSalle Futures
Group in Chicago. "The chip sector was downgraded today ...
technology is really the leader, so once again people are
wondering if these markets have overshot where the economy is in
real time."

Highlighting the poor fundamental backdrop, latest LME data
showed copper stocks rose 6,450 tonnes to total 420,550, their
highest since late April. Shanghai copper stocks are at their
highest in five-and-a-half years.

Additional weight was seen from the dollar, which rose against
a basket of currencies, making dollar-priced metals more expensive
for non-U.S. investors. [USD/]

Copper prices have risen more than 120 percent this year,
benefiting from dollar weakness, Chinese buying, new investor cash
and improving economic data.

Limiting copper's downside was news that BHP Billiton (BHP.AX)
(BLT.L) halted all operations at its Spence copper mine in Chile
after striking workers invaded the installations. [BHP.L-RTRS]

Also, workers at Chile's massive Chuquicamata mine asked state
copper giant Codelco for a 7.5 percent salary hike in contract
talks that could set a tough precedent for the world's top
producer. [ID:nN18219629]

ALUMINUM STOCKS SURGE

Among other metals, aluminum MAL3, used to make vehicles and
packaging, ended at $2,031 a tonne from $2,065 with latest LME
data showing stocks surged 35,925 tonnes to total 4.595 million
tonnes, near record levels.

LME aluminum stocks have risen sharply this week, with a lot
of the deliveries going into warehouses in Detroit indicating
demand from the auto sector was weakening.

But Citigroup analyst David Thurtell said the market
overlooked bearish stocks data as a lot of aluminum was tied up in
financing deals and not available for consumption, while options
activity added support. [ID:nLL175677]

On Wednesday, aluminum hit $2,095 a tonne, its highest since
early August.

Zinc MZN3 closed at $2,215 from $2,248, while stainless
steel-making ingredient nickel MNI3, the worst performing metal
in recent weeks, ended at $16,975 from $17,200.

LME zinc stocks are at four-year highs, while nickel stocks
are at 15-year highs, as demand from the stainless steel sector
remains weak.

Battery material lead MPB3 closed at $2,332 from $2,403,
while tin MSN3 ended at $14,860 from $15,195.

Metal Prices at 1907 GMT
Metal Last Change Pct Move End 2008 Ytd Pct

move
COMEX Cu 307.80 -2.95 -0.95 139.50 120.65
LME Alum 2045.00 -20.00 -0.97 1535.00 33.22
LME Cu 6826.00 -54.00 -0.78 3060.00 123.07
LME Lead 2338.00 -65.00 -2.70 999.00 134.03
LME Nickel 17100.00 -100.00 -0.58 11700.00 46.15
LME Tin 14945.00 -250.00 -1.65 10700.00 39.67
LME Zinc 2217.00 -31.00 -1.38 1208.00 83.53
SHFE Alu 15605.00 90.00 +0.58 11540.00 35.23
SHFE Cu* 53540.00 -400.00 -0.74 23840.00 124.58
SHFE Zin 17870.00 35.00 +0.20 10120.00 76.58
** 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
Angus MacSwan and Christian Wiessner)