(Adds fresh comment/details, changes dateline from Manila)
By Maytaal Angel
LONDON, Nov 19 (Reuters) - Copper prices fell on Thursday after touching 14-month highs the previous day, weighed down by a stronger dollar and as investors grew concerned that prices had run ahead of weak fundamentals.
Benchmark copper on the London Metal Exchange traded at $6,830 a tonne at 1035 GMT from a close of $6,880 on Wednesday, when the metal used in power and construction hit a peak of $6,992 - its best level since late September 2008.
"We had a good run early this week, people are taking money off the table," said Citigroup analyst David Thurtell. "The tendency would be to fall back a few hundred dollars ... physical demand is soft and stocks keep on rising."
The dollar rose against a basket of currencies, making dollar-priced metals more expensive for non-U.S. investors. Also weighing on copper, equities, seen as indicating sentiment over future economic growth, fell in Europe.
Latest LME data showed copper stocks rose 6,450 tonnes to total 420,550, their highest since late April. In Shanghai copper stocks are at their highest in five and a half years.
Copper prices have risen more than 120 percent this year, benefiting from strong global equities, the dollar's weakness and growing expectations demand will pick up strongly in 2010.
The metal used in power and construction has surged even as inventories continue to rise, indicating real consumption remains weak.
"It seems that the infatuation with commodities continues despite less than stellar fundamentals," MF Global analyst Edward Meir said in a note, adding $7,500 looks to be the next resistance for LME copper "as charts seem to be wide open."
Copper is up around 5 percent this week, its biggest gain in nearly a month, although the metal failed to rise past $7,000 on Wednesday as poor U.S. housing data rattled investors.
Underpinning copper was new that BHP Billiton halted all operations at its Spence copper mine in Chile after striking workers invaded the installations on the 37th day of the strike.
Also, workers at Chile's massive Chuquicamata mine asked state copper giant Codelco for a 7.5 percent salary hike, in contract talks that could set a tough precedent for the world's top producer.
ALUMINIUM STOCKS SURGE
Among other metals, aluminium, used to make vehicles and packaging, was at $2,052.50 a tonne from $2,065, with latest LME data showing stocks surged 35,925 tonnes to total 4.595 million tonnes, near record levels.
LME aluminium stocks have risen sharply this week, with a lot of the deliveries going into warehouses in Detroit -- a key car making region -- indicating demand from the autos sector is weakening.
But Citigroup's Thurtell said the market is overlooking bearish stocks data as a lot of aluminium is tied up in financing deals and not available for consumption, while the options trade was also supporting.
An option gives a holder the right to buy or sell a three month contract in the future at a fixed price known as the strike.
"We were hearing a lot of people were buying December 2,000 strikes. When aluminium rose earlier this week, probably there were some option shorts who were having to cover positions, that helped push it above $2,000," he said.
On Wednesday, aluminium hit $2,095 a tonne, its highest since early August.
Zinc was at $2,247 from $2,248, while stainless steel-making ingredient nickel, the worst performing metal in recent weeks, was at $17,084 from $17,200.
LME zinc stocks are at four-year highs, while nickel stocks are at 15-year highs, as demand from the stainless steel sector remains weak. Battery material lead was at $2,360 from $2,403, while tin was at $15,100 from $15,195.
Metal Prices at 1036 GMT Metal Last Change Percent Move End 2008 Ytd Percent
move COMEX Cu 310.75 0.00 +0.00 139.50 122.76 LME Alum 2046.00 -19.00 -0.92 1535.00 33.29 LME Cu 6825.00 -55.00 -0.80 3060.00 123.04 LME Lead 2355.00 -48.00 -2.00 999.00 135.74 LME Nickel 16975.00 -225.00 -1.31 11700.00 45.09 LME Tin 14975.00 -220.00 -1.45 10700.00 39.95 LME Zinc 2241.00 -7.00 -0.31 1208.00 85.51 SHFE Alu 15605.00 90.00 +0.58 11540.00 35.23 SHFE Cu* 53540.00 -400.00 -0.74 23840.00 124.58 SHFE Zin 17870.00 35.00 +0.20 10120.00 76.58 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
