CORRECTED - METALS-Copper near 15-mth high on dollar, supply worries

* Concentrates market tight; Codelco workers could strike * Nickel stocks soar to highest ever level (Corrects to Thursday) By Maytaal Angel LONDON, Dec 24 (Reuters) - Copper rose near 15-month highs on Thursday, underpinned by the dollar's first fall in five sessions, supply concerns and expectations demand will improve next year. Zinc hit a fresh 21-month high, tin a 14-month high and nickel a two-month high despite stocks of the metal in LME warehouses hitting their highest ever levels. Benchmark copper for three-months delivery MCU3 on the London Metal Exchange ended at $7,070 a tonne in kerb trading from a close of $7,000 on Wednesday. Prices of the metal used in power and construction hit a day's high of $7,130, not far off a recent 15-month top of $7,170. "You have a recipe for higher prices -- the weaker dollar, expectations China will buy (next year) and potential strikes in Chile," said Alex Heath, head of base metals at RBC Capital Markets. "There's a general expectation for 2010 and 2011 to be solid years and the funds, they're not buying for next month or the next six months and they consider these prices to be cheap." The dollar dipped early on Thursday, coming off three-month highs against a basket of currencies after weak U.S. housing data the previous day. [USD/] It later trimmed losses however, after data showed U.S. durable goods orders rose less than forecast in November while initial jobless claims fell more than forecast last week. For details on U.S. data, see [ID:nN24182625] [ID:nN23158877]. A weak dollar makes dollar-priced metals cheaper for non-U.S. investors. Boosting metals prices was news that Japanese and Chinese copper smelters have agreed on a 38 percent cut in 2010 treatment charges with Freeport-McMoRan (FCX.N). [ID:nSGE5BN025] The deal illustrates that the copper concentrates market is looking tight and smelters have less bargaining power as they cannot buy concentrate on the spot market. Moreover, the tightness could be exacerbated if miners at one of the world's biggest copper mines, Codelco's Chuquicamata in Chile, reject a final pay deal. Earlier this week, unions voted down an initial offer, but Codelco said it will have enough stocks to honour contracts early next year if union workers do strike. [ID:nN23160262] "This is end-of-year optimism confronting fundamentals and it's the optimism that is carrying the day," Jonathan Barratt, managing director of Commodity Broking Services, said. Offsetting this optimism slightly, physical demand remains weak for now. Latest data showed LME copper stocks rose 2,025 tonnes to total 484,800 tonnes, their highest in eight months. Also, Japan's copper demand data for November was mixed, showing returning consumption in some industries, but not all. [ID:nTOE5BN03T] NICKEL STOCKS SOAR Nickel inventories at London Metal Exchange-registered warehouses climbed 1,836 tonnes on Thursday to hit their highest ever level at 152,400 tonnes. Prices of the metal were little affected by the news. Stainless steel making ingredient nickel MNI3 ended at $18,750 from $18,425, having earlier hit $18,900, its highest level in two months. "That market has been perceived as an underperformer and that's attracting investment buying even though the fundamentals appear to be weak as registered by rising stocks," said Heath. Elsewhere, zinc MZN3 ended at $2,491 a tonne from $2,539, having earlier hit $2,551, a level not seen since mid-March last year. Sister metal lead MPB3, used to make batteries, was ended at $2,343 from $2,332, while tin MSN3 was ended at $16,150 from $16,025, having earlier hit $16,200, a level not seen since early October last year. Aluminium MAL3, used in transport and packaging, ended at $2,255 from $2,256. Stocks of the metal in LME warehouses remain near record highs at around 4.6 million tonnes, but much of the metal is tied up in financing deals so its impact on prices is limited. Metal Prices at 1407 GMT Metal Last Change Pct Move End 2008 Ytd Pct move COMEX Cu 319.45 1.00 +0.31 139.50 129.00 LME Alum 2250.00 -6.00 -0.27 1535.00 46.58 LME Cu 7095.00 95.00 +1.36 3060.00 131.86 LME Lead 2345.00 13.00 +0.56 999.00 134.73 LME Nickel 18700.00 275.00 +1.49 11700.00 59.83 LME Tin 16025.00 200.00 +1.26 10700.00 49.77 LME Zinc 2505.00 -34.00 -1.34 1208.00 107.37 SHFE Alu 16435.00 130.00 +0.80 11540.00 42.42 SHFE Cu* 57110.00 1500.00 +2.70 23840.00 139.56 SHFE Zin 19675.00 390.00 +2.02 10120.00 94.42 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Sue Thomas) Global MarketsFunds NewsETFs News