* Markets await Fed chairman speech on Friday for direction * China refined copper imports rise 8.8 pct in July * Aluminium stocks in LME warehouses drop of 7,475 tonnes By Harpreet Bhal LONDON, Aug 22 (Reuters) - Copper edged up on Monday, supported by a weak dollar, although further gains were capped by growing concerns about a slowdown in the United States and a debt crisis in Europe, which raised fears about the outlook for global growth and demand for metals. Benchmark copper traded at $8,831 in official rings, up slightly from Friday's close of $8,825 a tonne. Investors are growing increasingly uneasy about global recovery prospects, with disappointing data from the United States and a debt crisis in the euro zone prompting investment flows into safe haven assets such as gold, which rallied to a new record high near $1,900 an ounce. Copper posted its third consecutive weekly loss last week, and is down more than 10 percent so far this month. "The market is stuck in a range and I wouldn't expect a dramatic pullback from here unless there is another sovereign downgrade or default. By the start of next month we are likely to go back to more fundamental-based trading," said Andrey Kryuchenkov, analyst at VTB Capital. The dollar edged lower against a basket of currencies, offering a modest boost to metals prices. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies. Investors will closely watch a speech from U.S. Federal Reserve Chairman Ben Bernanke on Friday at a lodge in Wyoming's Jackson Hole, for reassurance from the Fed that it stands ready to deal with the turmoil engulfing financial markets. "After soft German growth and a poor U.S. state manufacturing report last week, the Federal Reserve symposium at Jackson Hole, Wyoming, will be the pivotal event for commodities," ANZ wrote in a note. CHINA DEMAND In a boost to the demand outlook for copper, China's imports of refined copper rose 8.8 percent to a six-month high in July on spot shipments booked in May and June. "The data showed import numbers were better than the month before and it's still a good number," Kryuchenkov said. But China has warned that the eurozone's debt crisis will hurt the country by sapping demand for exports, the nation's top official newspaper said on Monday. However, it added that Beijing's relatively small holdings of euro assets will limit any damage to foreign exchange reserves. China accounts for nearly 40 percent of global copper demand, estimated at around 19 million tonnes this year. Investors are also eyeing more possible supply disruption after the labour union at the world's No. 3 copper mine, Chile's Collahuasi, threatened to stage a one-day stoppage on Sept. 2. Data from the London Metal Exchange (LME) showed aluminium stocks in warehouses monitored by the LME fell by 7,475 tonnes, with large stocks leaving U.S. warehouses in Detroit. About 70 percent of those aluminium stocks are tied up in financing deals, and analysts say these deals are unlikely to be unwound soon given the limited money-making opportunities available to banks facing historically low interest rates. A typical deal consists of banks buying nearby aluminium from a producer, selling it forward at a profit and striking a warehouse deal to store it cheaply for an extended time period. Separately, provisional data from the International Aluminium Institute (IAI) showed the daily average primary aluminium output in July rose to 70,200 tonnes compared with a revised 69,900 in June, and in China it fell to 51,300 from 52,100. Aluminium traded at $2,362 a tonne in official rings, from Friday's close of $2,355. Tin was untraded in official rings, but bid at $23,150 a tonne, from Friday's close at $22,800. Zinc was also untraded in official rings, but bid at $2,175 a tonne from $2,193. Lead bid at $2,296 from Friday's close of $2,302. Nickel fell to $21,075 from $21,200. Metal Prices at 1222 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 397.95 -0.40 -0.10 444.70 -10.51 LME Alum 2362.00 7.00 +0.30 2470.00 -4.37 LME Cu 8830.00 5.00 +0.06 9600.00 -8.02 LME Lead 2296.00 -6.00 -0.26 2550.00 -9.96 LME Nickel 21075.00 -125.00 -0.59 24750.00 -14.85 LME Tin 23150.00 350.00 +1.54 26900.00 -13.94 LME Zinc 2168.00 -25.00 -1.14 2454.00 -11.65 SHFE Alu 17215.00 -35.00 -0.20 16840.00 2.23 SHFE Cu* 65910.00 -440.00 -0.66 71850.00 -8.27 SHFE Zin 16765.00 -120.00 -0.71 19475.00 -13.92 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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