* Metals up half a percent on average, weak dollar support * Near term clouded by growth worries, longer term brighter * Coming Up: US FHFA Home prices for July; 1400 GMT (Recasts, updates prices and comments, previous SINGAPORE) By Humeyra Pamuk LONDON, Sept 22 (Reuters) - Copper firmed on Wednesday on the back of a weaker dollar but the market looked heavy after recent gains and investors were reluctant to press higher in the absence of Chinese players and fresh impetus. U.S. Federal Reserve said on Tuesday that it stood ready to provide more support to the economy, which sent the dollar .DXY lower. A weaker dollar makes industrial metals cheaper for non-U.S. currency holders. [FRX/][ID:nN20109053] Benchmark copper CMCU3 on the London Metal Exchange was at $7,717 a tonne by 0912 GMT, versus Tuesday's close of $7,680 a tonne. The metal, used extensively in construction, hit $7,812 a tonne earlier this week, its highest since late April. "It's a bit of a puzzling reaction," said analyst Robin Bhar at Credit Agricole. "But I suppose the market's thinking all the good news is in the price," he said. "The dollar's going to stay weak, copper market is in deficit -- the market's taking a "so what" attitude probably," he said. The absence of Chinese investors from the market due to the holidays injected some hesitancy into the London market, traders said. The Shanghai Futures Exchange is closed for the three-day Mid-Autumn Festival, reopening on Monday. "Metals have become a range play and we are right at the top now. I can't see copper breaking $8,000 in this environment. There is nothing out there that could fuel that kind of move," a trader in Singapore said. In the past, speculators have used limited volumes during Chinese holidays to engineer a sharp move in prices in order to spark heavy covering once Shanghai re-opens. FUNDAMENTALS Worries about the slow recovery in the United States kept metals and equity markets in check, but in the longer term limited new supply from the world's copper mines would keep prices on an upwards track. Industry data on Tuesday showed the market tightness for copper. World refined copper consumption exceeded production by 281,000 tonnes between January and June this year, against a deficit of 125,000 tonnes in the same year-ago period, the International Copper Study Group (ICSG) said. [ID:nLDE68K12C] "We have become more positive on the base metals - primarily driven by persistently tight supply in the bellwether copper market," ANZ said in a report where the bank raised its outlook for copper in 2011 to $4.06/lb ($8,950 a tonne) from a forecast $3.35 ($7,835 for 2010). The bank saw copper peaking at $4.20 in 2012 before moderating in 2013 and 2014. On Wednesday, copper stocks saw a rise of 2,075 tonnes, but still the total at 382,100 tonnes, was at its lowest since last November with cancelled warrants -- material earmarked for delivery -- accounting for 7.5 percent of the total stocks. Nickel CMNI3 hit a two-week low of $22,305 a tonne and was at $22,350 a tonne from $22,350 a tonne. Premiums for high grade nickel in China have slipped to $100 on top of LME from $300-$400 during July, a metals trader said, as China destocks in response to slack stainless steel demand. Zinc CMZN3 was at $2,162.75 a tonne from $2,142. Aluminium CMAL3 traded at $2,189 a tonne from Tuesday's $2,175 a tonne, lead CMPB3 was bid at $2,227 from $2,175, tin CMSN3 at $22,875 from $23,000. Metal Prices at 0912 GMT Metal Last Change Pct Move End 2009 Ytd Pct move #VALUE! LME Alum 2184.00 9.00 +0.41 2230.00 -2.06 LME Cu 7710.00 30.00 +0.39 7375.00 4.54 LME Lead 2181.00 6.50 +0.30 2432.00 -10.32 LME Nickel 22360.00 10.00 +0.04 18525.00 20.70 LME Tin 22900.00 -100.00 -0.43 16950.00 35.10 LME Zinc 2156.00 14.00 +0.65 2560.00 -15.78 SHFE Alu 15725.00 -35.00 -0.22 17160.00 -8.36 SHFE Cu* 59830.00 -420.00 -0.70 59900.00 -0.12 SHFE Zin 17805.00 -300.00 -1.66 21195.00 -15.99 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Nicholas Trevethan in SINGAPORE, Editing by Alison Birrane)

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