MARKETS-METALS (UPDATE 4) * U.S. manufacturing, price presures weigh * Watch inventories for Chinese demand * Coming up: U.S. housing starts at 1230 GMT (Adds comment, updates prices) By Pratima Desai LONDON, June 16 (Reuters) - Copper prices slid on Wednesday as the dollar rose and fears of weak growth and demand prospects from the United States hit investor sentiment. Aluminium touched a two and a half week low of $2,535 a tonne and nickel tumbled to $21,734 a tonne, its lowest since last November. Both metals came under pressure on concerns about an oversupplied market. Benchmark copper on the London Metal Exchange traded at $9,020 a tonne in official rings from $9,154 a tonne at the close on Wednesday when the metal used in power and construction touched $9,234, its highest since June 1. The dollar rose against the euro on concerns that Greece's debt problems were spiralling out of control. A stronger dollar makes metals priced in the U.S. currency more expensive for holders of other currencies. Focus is also on the United States where recent manufacturing data suggests the economy is struggling with a mix of rising inflationary pressures and weak growth. "There has been a lot of negative economic data over the past couple of weeks and expectations are for more negative news flow out of the United States," said John Meyer, analyst at investment bank Fairfax. "I've got no problem with copper going to $8,000 a tonne, at $9,000 it still feels like the bullish end of the market." The United States is the world's second largest copper consumer, accounting for about 15 percent of global demand. "High oil prices do have an impact on trade flows and economic growth generally," Meyer said. That is particularly true of the United States, which imports a large proportion of its oil needs. WATCH INVENTORIES However, optimism about stronger demand later this year from China, with a 40 percent share of the global market estimated at 21 million tonnes this year, is expected to help buoy copper prices, analysts said.. "We have to watch inventories and Chinese import data to see what is happening," an LME trader said. Stocks of copper in London Metal Exchange warehouses at above 470,000 tonnes are the highest in more than a year and are up about 35 percent since early December 2010. "With steady copper demand in China more or less the only bright spot in the market, it is likely that metal will be relocated to China," Standard Bank said in a note. LME aluminium stocks are also within sight of the record high above 4.71 million tonnes hit in May. Aluminium has come under some selling pressure because of the stock build up, but the negative mood has to a large extent been offset by bank financing deals which are said to have tied up about 70 percent of LME inventories. The latest trigger for the sell-off was news that China's aluminium production hit a record high in May. The metal used in power, packaging and transport traded at $2,546 in the rings from $2,591 at the close on Wednesday, while stainless steel material nickel traded at $21,775 from $22,050 a tonne. Nickel has come under selling pressure on expectations of higher supplies as new mines start producing. "Demand from the stainless sector doesn't look too hot either," the trader said. Stainless steel mills account for about two-thirds of global nickel demand estimated at around 1.5 million tonnes this year. Lead traded at $2,490 a tonne from $2,518 on Wednesday, zinc was untraded, but bid at $2,205 from $2,246 and tin at $24,800 from $25,150 a tonne. (Reporting by Pratima Desai; editing by William Hardy)

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