METALS-Copper steady as inventories climb, dollar ticks up

* Tin hits highest since Oct 2008 * Aluminium LME inventories strike record high * Copper LME stocks at highest since mid-April LONDON, Dec 18 - Copper steadied on Friday, lacking momentum as rising inventories dented sentiment and the dollar recovered early losses. Copper for three-months delivery on the London Metal Exchange was quoted at $6,890/6,895 a tonne in rings from a close of $6,870 on Thursday. Copper inventories rose again, up 1,775 tonnes to an eight-month high of 476,350 tonnes. But some analysts underline that base metal prices have held up well in recent months despite rising stocks, and see prices rising further in 2010. "We expect 2010 to be a stronger year for growth, with better demand," said Calyon analyst Robin Bhar. "Come the new year we would expect more money coming into commodities because of fresh fund inflows." Copper has more than doubled this year on the back of hefty buying by China, but purchasing by the world's top consumer has cooled and OECD demand is still languishing. Tin, at $15,925 from $15,775, earlier hit a 14-month high of $16,000, as analysts cited worries about production cuts in Indonesia, the world's top exporter of the metal. DOLLAR TICKS UP Copper rose earlier on a weaker dollar, which made dollar-priced commodities cheaper for holders of other currencies. But metals came under pressure as the dollar ticked up against a basket of major currencies. Analysts add that copper has recently shown resilience, despite recent strength in the dollar which hit a 3-1/2 month high against the euro in the previous session. "The base metals survived this extraordinary move in the dollar extremely well," said Stephen Briggs, commodity strategist at RBS. Aluminium traded at $2,251 in rings from $2,220. LME stocks of the metal used in transport and packaging struck a record high above 4.6 million tonnes after climbing 1,375 tonnes. Japan's primary aluminium buyers have agreed to roughly 7-13 percent hikes in premiums for the first quarter of next year, to a 14-year high, as Japan's apparent aluminium demand has finally recovered close to levels seen before the financial crisis. Zinc was quoted at $2,437/2,440 from $2,391 and battery material lead was at $2,348 from $2,359. Nickel was at $17,150 from $17,100. Stocks of nickel rose 768 tonnes to 148,458 tonnes, their loftiest level since 1994 and just 3,000 tonnes below record highs. A slew of U.S. economic indicators released on Thursday painted a mixed picture, pointing to a steady economic recovery but a struggling labour market. Metal Prices at 1048 GMT Metal Last Change Percent Move End 2008 Ytd Percent move COMEX Cu 313.35 2.30 +0.74 139.50 124.62 LME Alum 2245.00 25.00 +1.13 1535.00 46.25 LME Cu 6905.00 35.00 +0.51 3060.00 125.65 LME Lead 2350.00 -9.00 -0.38 999.00 135.24 LME Nickel 17180.00 80.00 +0.47 11700.00 46.84 LME Tin 15825.00 50.00 +0.32 10700.00 47.90 LME Zinc 2435.00 44.00 +1.84 1208.00 101.57 SHFE Alu 16310.00 -90.00 -0.55 11540.00 41.33 SHFE Cu* 55500.00 -170.00 -0.31 23840.00 132.80 SHFE Zin 19120.00 245.00 +1.30 10120.00 88.93 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07