By Claudia Carpenter Oct. 21 (Bloomberg) -- Copper dropped for a second day in London, pressured by gains in the dollar and signs that China, the world's largest user of the metal, is slowing purchases. Tin rebounded from a 20-month low. Copper prices on the Shanghai Futures Exchange closed at the lowest since December 2005. China's industrial production growth in 2009 may be half this year's pace, Surrey, England-based research company CHR Metals Ltd. said yesterday. The dollar climbed to an 18-month high against the euro, making commodities more expensive for holders of other currencies. ``In terms of overall demand, I don't think the outlook is rosy,'' said James Roberts, a broker at Sucden (U.K.) Ltd. ``It's just a question of when'' producers will make supply cutbacks, he said. Copper for delivery in three months declined $40, or 0.9 percent, to $4,680 a metric ton as of 10:38 a.m. on the London Metal Exchange. Prices fell 1.9 percent yesterday. Copper inventories in warehouses monitored by the LME declined 6,500 tons, or 3.1 percent, the most since Feb. 18, according to the exchange's daily warehouse report. This ``could suggest that the market is starting to bottom out,'' said Daniel Smith, an analyst at Standard Chartered Plc in London. Copper is probably the only metal on the LME that hasn't fallen to the cost of production, Sucden's Roberts said. ``That's the only one that does look a little nervy,'' he said, with costs closer to $3,500 to $4,000 a ton. That compares with about $1,400 for lead, and zinc is about $200 higher than current prices for high-cost miners, he said. Lead dropped $45 to $1,375 a ton and zinc rose $10 to $1,215 a ton. Tin rose $75 to $12,400 a ton, after falling earlier today to $12,000 a ton, the lowest since Feb. 8, 2007. Aluminum rose $9 to $2,140 a ton and nickel fell $30 to $10,525 a ton. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net or ccarpenter2@bloomberg.net

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