* Physical copper demand seen picking up * Nickel price fall overdone- Graber * Coming up: ECB'S Bini Smaghi speaks, Stockholm; 1100 GMT (Recasts, add comments, details, pvs Singapore) By Silvia Antonioli LONDON, June 17 (Reuters) - Copper steadied on Friday as concerns over slower economic growth, which could weaken metals demand, weighed on market sentiment while a softer dollar lent support to prices. Benchmark copper on the London Metal Exchange was at $9,075 at a tonne by 0938 GMT, from $9,065 at the close on Thursday. It was on course for a weekly gain of about two percent but was still more than 10 percent down from the record high of $10,190 per tonne hit on Feb. 15. "It is really broader growth concerns that are weighing on the market," Credit Suisse analyst Stefan Graber said. "We had quite negative data. Our economists would argue that is just a temporary soft patch but from a metals point of view the fact the copper is (holding) at around $9,000 is positive," he added. "It's an indication that this market may have already priced in this slow-down in activity." The dollar was softer against a basket of currencies. A weaker U.S. currency makes dollar-priced commodities more affordable for holders of other currencies. "Economic growth may broadly slow world-wide, but the effect of uncertainty in the banking system combined with ongoing low interest rates and a weaker U.S. dollar should maintain key commodity prices, e.g. copper," Fairfax said in a note. PHYSICAL DEMAND Reports of increasing physical premiums, a decline in copper inventories on the LME and a narrowing contango -- discount for cash over three month material-- was indicating a pick up in demand for physical copper, Graber said. Copper inventories fell by more than 5 percent to 470,825 tonnes from last week, when they hit their highest in more than a year. The copper contango, which generally indicates supply exceeds demand in the near term, has narrowed from a nine-month high of $30 in early May to $8.50 a tonne. Zinc , used in galvanizing, was at $2,213 from $2,205.5 at Thursday's close and battery material lead was at $2,480 from $2,481. "We think the softness in the lead market, which is part seasonal, will be no more than temporary," Macquarie said in a note. "The medium-to-long term outlook lead market remains fundamentally positive. Similarly, we are increasingly positive on the zinc market outlook from a fundamental perspective." Aluminium was at $2,547.75 from $2,555 and nickel was at $21,640 from $21,605. "Nickel has come under quite some pressure because of upbeat news on supply from producers and substitution from nickel pig iron," Graber said. "The price reaction looks to us a bit overdone as there could still be some room for disappointment (on the supply side)." For news on Norilsk profits click on: Tin was at $24,875 from $24,905. Metal Prices at 0939 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2010 Ytd pct move COMEX Cu 410.10 -1.65 -0.40 444.70 -7.78 LME Alum 2557.00 2.00 +0.08 2470.00 3.52 LME Cu 9065.00 0.00 +0.00 9600.00 -5.57 LME Lead 2480.00 -1.00 -0.04 2550.00 -2.75 LME Nickel 21600.00 -5.00 -0.02 24750.00 -12.73 LME Tin 24905.00 0.00 +0.00 26900.00 -7.42 LME Zinc 2205.50 0.00 +0.00 2454.00 -10.13 SHFE Alu 16925.00 30.00 +0.18 16840.00 0.50 SHFE Cu* 68000.00 170.00 +0.25 71850.00 -5.36 SHFE Zin 17230.00 -65.00 -0.38 19475.00 -11.53 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Anthony Barker) ((silvia.antonioli@reuters.com; +44 20 7542 1755; Reuters Messaging: silvia.antonioli.reuters.com@reuters.net)

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