METALS-Stronger dollar pushes copper to one-week low

(Updates prices)

By Polina Devitt

LONDON, June 5 (Reuters) - Copper prices fell to a one-week low on Friday, pressured by a rising dollar and growing inflation fears, after a stronger-than-expected U.S. jobs report fuelled bets of a rate hike by the U.S. Federal Reserve.

Benchmark three-month copper on the London Metal Exchange was down 3.1% at $13,502.50 a metric ton by 1600 GMT, its lowest level since May 28, having broken below support of the 21-day moving average. The most active COMEX July contract lost 3.9%.

Copper, used in power and construction, is up 9% so far this year, having hit a record high of $14,527.5 in January. Analysts at several investment banks upgraded their price forecasts this week, with Citi expecting $15,000 within six to 12 months.

"High prices will inevitably test demand elasticity, particularly in China where buyers have historically shown sensitivity to elevated prices," said Ole Hansen, head of commodity strategy at Saxo Bank.

The Yangshan copper premium , a gauge of Chinese appetite for imported copper, fell 9% this week to a five-week low of $64 a ton.

Supporting copper in the short term is a premium of COMEX copper contracts over the LME benchmark ahead of a recommendation from the U.S. Department of Commerce on possible import tariffs, which the market expects by end-June.

This premium is attracting inflows to COMEX copper stocks in the U.S. - already at a record high of 583,055 tons - and tightening availability of visible inventory elsewhere.

Available stocks in LME-registered warehouses , according to daily LME data, are at 240,050 tons, the lowest since February 24, and cancelled stocks represent 37% of the total.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 4% this week to 169,512 tons, the lowest since end-December, while tin stocks rose 49% to 12,358 tons.

In other LME metals, aluminium fell 1.8% to $3,598.50 a ton, zinc lost 1.8% to $3,523, lead eased 0.7% to $2,002.50, tin slid 5.9% to $52,385 and nickel was down 0.9% at $18,515.

Nickel touched lowest since May 19, aluminium and tin hit their lowest since May 20, and lead hit a one-week low.

Indonesia's nickel industry group FINI said production capacity utilisation at some smelters dropped to 76% from 84% after nickel ore mining quotas were cut. (Reporting by Polina Devitt. Additional reporting by Solomon Cefai; Editing by Mark Potter and Sanjeev Miglani)