* Euro strengthens against dollar * Copper tagged for delivery rising in LME warehouses * Chinese demand cooler than last year (Recasts, previous Manila) By Rebekah Curtis LONDON, March 3 (Reuters) - Copper slipped on Wednesday with concerns about supply in quake-hit Chile subsiding after key mines resumed output in the world's top producer of the metal. But dollar weakness stemmed losses in industrial metals. Copper for three-months delivery CMCU3 on the London Metal Exchange traded at $7,472 a tonne at 1113 GMT from a close of $7,490 on Tuesday. Chile's copper mines, which produce a third of the world's supply, appeared to have emerged almost unscathed from Saturday's massive 8.8-magnitude quake which killed almost 800 people, toppled buildings, shattered key highways and downed power lines. [ID:nN02150357] The metal used in power and construction jumped to a five-week peak of $7,600 on Monday on supply worries after Saturday's quake forced Chile to temporarily shut down nearly a quarter of its mines. "Now that it appears most of the problems have been sorted out," said Daniel Smith, an analyst at Standard Chartered. "But the price is still higher than than where we were before the problems emerged. So it does show there are some underlying legs in this current rally." For more on Chile mines resuming output, see [ID:nN28135112] For a map locating Chile's major copper mines and the quake epicentre, see: link.reuters.com/qug92j Providing some support for metals prices, the dollar's weakness against other major currencies .DXY made dollar-priced metals cheaper for non-U.S. investors. The euro rose against the dollar as a Greek government source cited details of fresh plans to tackle Greece's debt problems. [FRX/] But MF Global analyst Edward Meir said the greenback could strengthen over the course of the year given the lack of a viable alternative to the U.S. currency. "With the likelihood that the Fed will also tighten monetary conditions over the course of the year - albeit gradually - we think the dollar could continue to strengthen over the months ahead, and thus may prevent metals from developing much of a sustained run to the upside," Meir said in a report. CANCELLED WARRANTS Also capping copper's losses was a recent rise in cancelled warrants in LME warehouses. Material tagged for delivery rose to 35,975 tonnes on Tuesday from 29,800 the previous day, and was up from 14,000 a week earlier. Cancelled warrants now account for 6.5 percent of stocks at LME warehouses, which last fell 1,750 tonnes to 550,575 tonnes. Copper is down one percent so far this year as investors lament a lack of demand from top consumer China. Demand from China helped copper prices surge 140 percent in 2009 in the absence of Western demand, but the world's third-largest economy is now buying less as it moves to a less accommodative monetary policy to temper rapid growth. Market players are scouring data from Western economies to see if the OECD will pick up the slack as Chinese demand cools. Data due on Wednesday includes U.S. non-manufacturing ISM numbers at 1500 GMT. [MI/DIARY] "As we go through this year we should see an improvement outside China taking place," said Standard Chartered's Smith. "China led the recovery, now its up to other countries to pick up the baton." Aluminium CMAL3 traded at $2,170 from $2,168, zinc CMZN3 was at $2,260 from $2,255 and battery material lead CMPB3 was at $2,225 from $2,200. Tin CMSN3 traded at $17,125 from a last bid of $17,075 and nickel CMNI3 was at $22,575 from $22,240. Metal Prices at 1116 GMT Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 337.85 -1.70 -0.50 332.75 1.53 LME Alum 2166.00 -2.00 -0.09 2230.00 -2.87 LME Cu 7465.00 -25.00 -0.33 7375.00 1.22 LME Lead 2219.00 19.00 +0.86 2432.00 -8.76 LME Nickel 22475.00 235.00 +1.06 18525.00 21.32 LME Tin 17075.00 -50.00 -0.29 16950.00 0.74 LME Zinc 2253.00 -2.00 -0.09 2560.00 -11.99 SHFE Alu 16680.00 130.00 +0.79 17160.00 -2.80 SHFE Cu* 59460.00 460.00 +0.78 59900.00 -0.73 SHFE Zin 18090.00 185.00 +1.03 21195.00 -14.65 ** 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 Manolo Serapio Jr. in Manila; Editing by Keiron Henderson)

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