* Dollar weakens further on comments by China official * Nickel demand expected to slacken over summer * Baosteel sees 5-7 percent growth a year in China stainless mkt (Recasts, add comments, details, previous Singapore) By Melanie Burton LONDON, June 7 (Reuters) - Copper steadied on Tuesday supported by a soft dollar and prospects of a demand pick-up into the second half but patchy U.S. economic data and perceptions of a slowdown in China checked its advance. Benchmark copper on the London Metal Exchange traded at $9,135 at 1001 GMT and unchanged having closed at $9,135 on Monday. The metal hit its highest in a month at $9,278.50 one a week ago, but has failed to gain any momentum. Metals markets are treading water until the effects of China's tightening measures become clearer and U.S and European macro figures brighten, analyst Max Layton at Macquarie said. "People are worried that China is slowing down and also over the global macro data. If they had the security that Chinese data wasn't going to print weaker...over the next two months, there would be many more buyers than there are now." China is the world's top consumer of base metals, accounting for nearly 40 percent of copper demand last year. Trade figures are due on Thursday with analysts expecting a small increase in refined imports from April when they fell 16.6 percent on the month to 160,236 tonnes. "We think PMIs ...will show a soft landing for China and 2011 will be a rerun of 2010 - choppy through the first half and a run-up (in copper prices) towards year end," Layton added. Analysts said that without strong conviction in either direction, metals would look to currencies where the weaker dollar was providing support on an intraday basis. "The weaker dollar has underpinned rebound in most of the metals lately," FastMarkets said in a note. "However we feel the deterioration in economic data is likely to lead to weaker metal prices overall and we expect rallies will continue to be seen as selling opportunities." The dollar fell to a one-month low against a basket of currencies on Tuesday and a record low against the Swiss franc after a Chinese official said the greenback would continue to weaken versus other major currencies. The euro has been adding to its advance against the dollar on prospects of monetary tightening by the European Central Bank which will hold a rate meeting and news conference on Thursday. NICKEL PROSPECTS The nickel market looks like it will soften over the next few months as European stainless consumers hold off metals purchases in part due to slow demand, but also falling prices, a physical nickel trader said. "The monthly nickel price average has fallen each month since February. That's not good for stainless steel makers because they like to charge a nickel surcharge so they are looking to postpone and cancel where they can." "If this were 10 years ago and it were a pure supply and demand game, then I'd be selling it ...but stronger copper and the euro are maintaining the complex," he added. However, Baosteel's stainless steel unit expects stainless steel consumption in China to grow 5 to 7 percent per year over the next five to 10 years. Nickel traded at $22,810 compared with a close of $22,630 on Monday. Tin was at $26,150 from $26,005 while zinc, used in galvanising was at $2,283.75 from $2,272 on Monday's close. Battery material lead traded at $2,528 from $2,502 and aluminium was at $2,681 from $2,660. U.S. aluminium producer Ormet Corp has begun to restart its idled alumina refinery in Burnside, Louisiana, and expects to be producing the intermediate material for making aluminum metal in the fourth quarter. Metal Prices at 1100 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 414.35 0.15 +0.04 334.65 23.82 LME Alum 2664.00 4.00 +0.15 2230.00 19.46 LME Cu 9130.00 -5.00 -0.05 7375.00 23.80 LME Lead 2502.00 0.00 +0.00 2432.00 2.88 LME Nickel 22630.00 0.00 +0.00 18525.00 22.16 LME Tin 26005.00 0.00 +0.00 16950.00 53.42 LME Zinc 2272.00 0.00 +0.00 2560.00 -11.25 SHFE Alu 17225.00 285.00 +1.68 17160.00 0.38 SHFE Cu* 68260.00 -160.00 -0.23 59900.00 13.96 SHFE Zin 17475.00 0.00 +0.00 21195.00 -17.55 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Melanie Burton; editing by Jason Neely)

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