* Equities rise on strong U.S. corporate earnings * LME aluminium stocks hit record high above 4.5 million tonnes * LME cash copper at premium versus 3 month price LONDON, July 15 - Copper hit a one-month high on Wednesday as the dollar dipped and upbeat U.S. corporate and economic numbers spurred hopes the global economy had passed the worst of its downturn. Copper for three-months delivery on the London Metal Exchange closed at $5,263 a tonne from $5,045 at the close on Tuesday. The dollar fell across the board on Wednesday, making dollar-priced metals cheaper for non-U.S investors. "Equities are higher and the dollar lower which is good for commodities," said Commerzbank analyst Eugen Weinberg. Global stocks rallied as solid results from Goldman Sachs and Intel Corp on Tuesday reassured investors on the outlook for the world economy. But Weinberg, like other analysts, said investors have been over-zealous pricing in a sure copper demand recovery this year. "A strong recovery is already priced into commodities. It's premature...We will see stabilization of demand, but I doubt we will see a strong recovery," he said. Copper extended gains after data showed the slumping factory sector in New York nearly pulled out of contraction in July. Prices of the metal used in power and construction rose as much as 4.7 percent to a session high of $5,284, the biggest one-day percentage rise since June 4. Analysts warn the economic recovery may yet be protracted, and that the trend of falling copper stocks is set to stall as markets enter a traditionally quiet trading season. Copper stocks in LME warehouses rose 4,200 tonnes to 261,100 tonnes, but are still way below 500,000 tonnes in late February. WANING CHINA DEMAND Copper has risen around 65 percent this year, mostly due to Chinese buying, as the world's biggest copper consumer imported 1.8 million tonnes of refined copper in the first half. But analysts say Chinese buying will wane this quarter. "Overall ... we still expect refined imports to ease in the coming months although the magnitude of the fall is likely to be lower than previous market expectations," said Barclays Capital. Also, data showed a dominant position controlling between 50-80 percent of LME copper stocks as of Monday. Traders said this was behind copper moving into backwardation -- a premium of $20.00 for LME cash copper over the three-month contract. This compares to a contango of $14.50 on July 8. Elsewhere, aluminium was at $1,655 from $1,605. Stocks of the metal used in transport and packaging rose 63,125 tonnes to a record above 4.5 million tonnes. Aluminium stocks have risen almost consistently this year, and while fundamentals remain poor, confidence in Chinese purchases and recovery hopes have lifted demand recently. Elsewhere, zinc was at $1,542 from $1,495, battery material lead was at $1,635 from $1,595, while tin was last quoted at $13,300/13,325 from $12,900.Steel-making ingredient nickel was at $15,940 from $15,575. Traders remain concerned about the scale of long positions in the tin market, compared with the amount of available metal in LME warehouses For latest Reuters polls of industrial metals price forecasts, click on or Metal Prices at 1612 GMT Metal Last Change Percent Move End 2008 Ytd Percent move COMEX Cu 237.95 8.95 +3.91 139.50 70.57 LME Alum 1646.00 41.00 +2.55 1535.00 7.23 LME Cu 5235.00 190.00 +3.77 3060.00 71.08 LME Lead 1631.00 36.00 +2.26 999.00 63.26 LME Nickel 15775.00 1050.00 +7.13 11700.00 34.83 LME Tin 13190.00 890.00 +7.24 10700.00 23.27 LME Zinc 1531.00 36.00 +2.41 1208.00 26.74 SHFE Alu 13490.00 155.00 +1.16 11540.00 16.90 SHFE Cu* 41340.00 1640.00 +4.13 23840.00 73.41 SHFE Zin 13250.00 360.00 +2.79 10120.00 30.93 ** 1st contract 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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