Firmer dollar weighs on metal prices * Analyst sees copper fair value at $5,700-$5,800 * Japanese aluminium port stocks hit fresh record * Coming up: New York Fed manufacturing at 1230 GMT (Adds details, quotes, previous MELBOURNE) By Eric Onstad LONDON, May 15 (Reuters) - Copper and other industrial metals fell on Friday as investors regarded a recent rally as overshooting the supply-demand fundamentals while a firmer dollar also weighed on prices. "Right now, we're probably above fundamentally justified levels, given that we've really not seen a big shift in increased physical buying," said Robin Bhar, head of metals research at Societe Generale in London. "There's maybe been some long liquidation setting in ahead of the weekend, and there are some investors out there thinking it's not going to get any higher from here, let's go short." Three-month copper on the London Metal Exchange shed 0.5 percent to $6,367.50 a tonne by 0946 GMT, after closing flat in the previous session. It was eyeing a second week of little price movement. Copper has been consolidating since hitting the highest levels in 2015 last week at $6,481, having clawed back nearly 20 percent from the year's lows to post a modest 1 percent year-to-date gain. "Demand conditions aren't fantastic ... for me, fair value in copper would be $5,700-$5,800," Bhar added. China's interest rate cut at the weekend was the most recent in a string of measures to shore up a property sector whose slowdown has dragged on economic growth and demand for metals. "There's still a good long-term story to copper, given the lack of supply from around 2017, ... but I wouldn't necessarily be chasing copper too hard at these levels," said analyst Dan Morgan at UBS in Sydney. A slightly firmer dollar, rebounding after recent losses, also pressured the market. A stronger dollar undermines the purchasing power of commodities buyers holding other currencies. A commodities rally in recent months has been underpinned by a weaker dollar, but some investors believe U.S. economic data are set to improve, which would lead to more a robust dollar and weigh on metals prices. Among other metals, LME zinc dropped 1.3 percent to $2,280 a tonne and aluminium slipped 0.7 percent to $1,855. Aluminium stocks at Japanese ports rose for the 13th month to a record high of 470,200 tonnes, highlighting the healthy supply situation in the sector.

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