UPDATE 7-Copper slips on firmer dollar, nickel down 8 pct

(Recasts, adds comment, detail, closing prices)

By Karl Plume and Anna Stablum

LONDON, May 22 (Reuters) - Copper prices were pressured on
Thursday as the dollar firmed and the market worried about weak
demand in the United States and China.

Nickel MNI3 fell more than 8 percent to $23,250 a tonne,
the lowest since July 2006, lead MPB3 slipped by nearly 7
percent to $2,000, the lowest since May 2007 and zinc MZN3
ceded more than 5 percent to $2,085 a tonne.

Copper for three months delivery MCU3 on the London Metal
Exchange ended down at $8,130 a tonne compared with $8,240 at
the close on Wednesday.

The dollar rose on better-then-expected jobless claims data,
but support remained fragile as record high oil prices stoked
worries about the health of the U.S. economy. [ID:nN22294977]

"The U.S. dollar's had a bit of a rebound and that's
probably knocked copper around a little bit," said David
Thurtell, analyst at BNP Paribas.

Analysts cited ongoing worries about demand from the United
States where the housing market is already in recession and weak
demand from China as two reasons behind lower copper prices.

China's imports of refined copper fell 31 percent in April
from a year earlier as high prices discouraged importers of the
metal in the world's top consumer of copper. [ID:nSP133874]

Rising stocks in LME warehouses -- up more than 10 percent
at around 125,000 tonnes since the beginning of May -- have also
hit copper market sentiment.

Lead ended at $2,010 a tonne from $2,147 on Wednesday, zinc
MZN3 slipped to $2,110 from $2,205 and nickel MNI3 closed at
$23,500 from $25,300.

All three metals have come under selling pressure in recent
days on expectations of weak demand and the potential for market
surpluses.

The sell-off on Thursday triggered a series of technical
stops, which added to downward momentum, analysts said.

"Charts look miserable for nickel and lead," said analyst
Edward Meir at MF Global. "Nickel is breaking down and zinc also
looks very bad on the charts."

Tin MSN3 was untraded at the close, but bid at $23,700
from $24,300 on Wednesday and aluminium MAL3 was last traded
at $3,000, down from $3,020 a tonne.

Aluminium is up 27 percent so far this year. The metal
widely used in transport, packaging and power has been boosted
this year by power shortages in China and South Africa.

Another reason is the rising cost of energy, which accounts
for one-third of aluminium smelting costs estimated at an
average around $2,400 a tonne.

"Aluminium... is just very vulnerable to power problems and
the rising cost of power," said David Thurtell, analyst at BNP
Paribas.

South Africa's state-owned power utility Eskom [ESCJ.UL]
warned on Thursday that it might be forced to resume scheduled
power cuts as its electricity grid was under renewed pressure.
[ID:nL22155251]

Metal Prices at 1624 GMT
Metal Last Change Pct Move End 2007 Ytd Pct

move
LME Cu 8150.00 -90.00 -1.09 6670.00 22.19
SHFE Cu* 62870.00 540.00 +0.87 56880.00 10.53
LME Alum 2993.00 -27.00 -0.89 2403.00 24.55
SHFE Alu* 19215.00 265.00 +1.40 18180.00 5.69
COMEX Cu** 371.30 -4.05 -1.08 303.50 22.34
LME Zinc 2110.00 -95.00 -4.31 2370.00 -10.97
SHFE Zinc* 18265.00 105.00 +0.58 18950.00 -3.61
LME Nick 23750.00 -1550.00 -6.13 26350.00 -9.87
LME Lead 2020.00 -127.00 -5.92 2550.00 -20.78
LME Tin 23600.00 -700.00 -2.88 16400.00 43.90
** 1st contract month for COMEX copper
* 3rd contact month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07

(Additional reporting by Pratima Desai)

(Editing by Peter Blackburn)