LONDON, June 1 (Reuters) - Copper rose more than 3.5 percent on Monday to break through $5,000 a tonne for the first time since mid-October, as Chinese economic data and a weak dollar drove industrial metals to their highest prices in months. Lending support to the view the global economic slowdown may be bottoming out, China's purchasing managers' index for May marked the third month of expansion of manufacturing activity, the China Federation of Logistics and Purchasing said. The figure was down slightly from 53.5 in April but well above the record low of 38.8 in November. Copper for three month delivery on the London Metal Exchange traded at $4,955 a tonne from $4,830 at the close on Friday and compared with a session high at $5,014.75. Battery material lead hit its highest level since Oct. 14 at $1,642.50 a tonne versus $1,570, but was traded at $1,630 in LME rings. "The market continues to buy the recovery story, as economic data suggests that the worst is behind us," said David Thurtell, an analyst at Citigroup. "Investment money continues to pour into the complex." "With most of the metals hitting new highs for the year, the technical and momentum traders will start to pile in." In addition to China, one of the world's top industrial metal producers and consumers, investors will eye U.S. ISM and construction numbers from 1400 GMT. Copper prices have risen about 60 percent this year and dealers are looking for the rally to continue, at least in the short term, as rising European equities and a fall in the dollar sharpen appetite for riskier investments. A weak U.S. currency makes metals priced in dollars less expensive for holders of other currencies. A rise in cancelled warrants -- material earmarked for delivery -- has boosted sentiment in copper, which is used in power and construction. Analysts say Chinese stockpiling is behind the movements but the drawdowns in LME stocks may now be running out of steam. On Friday, cancelled warrants were 36,700 tonnes compared with 38,825 tonnes the session before, while LME inventories dipped 300 tonnes to 311,975 tonnes. ALUMINIUM GAINS Aluminium rose 2.9 percent to a high of $1,482 but traded at $1,457 in rings from $1,440. The metal used in transport and packaging has come under pressure in recent weeks on news of falling car sales data from auto makers. Giving some hope to the industry, General Motors Corp filed for bankruptcy protection, forcing the automaker into a new and uncertain era of government ownership. Aluminium cancelled warrants were 65,900 tonnes on May 29 compared with 52,900 tonnes on May 28. Total LME aluminium stocks rose 3,575 tonnes to a record above 4.2 million tonnes. "You have a continuation of Friday's strength mainly on the back of a weaker dollar...and you've got the Chinese data as well," said Leon Westgate, an analyst at Standard Bank. He added that the news from the U.S. auto industry was helping boost aluminium sentiment but the interest rate decision and comments from the European Central Bank later this week, would offer greater economic clues. Steel making ingredient nickel hit $14,455, its highest since Oct. 6, from $13,950 but was last bid at $14,250. Zinc hit a multi-week high and was traded at $1,580 a tonne from $1,555 and tin edged up to a last bid price of $14,530 from $14,200 -- its highest level since mid-November. Worries about lead and tin supplies have dogged both markets in recent weeks, with a dominant position controlling 50-80 percent and 40-50 percent respectively, of cash warrants on LME stocks. This was reflected by the premium for cash material over three months for tin, which was about $243/263 a tonne, off highs over $600 in late April, but still above levels below $100 in mid-April. Metal Prices at 1214 GMT Metal Last Change Percent Move End 2008 Ytd Percent

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