* Dollar strength and weak oil weighs across commodities

* Lead falls more than 3 percent on rising stocks

* U.S. employment figures in focus

LONDON, Aug 1 (Reuters) - Copper prices fell on Friday as a
firmer dollar and weaker oil prices dampened sentiment across
commodities, but historically low stocks lent support.

Lead MPB3 fell more than 3 percent after a large rise in
London Metal Exchange (LME) stocks encouraged some investors to
lock-in profits following strong gains over the past month.

Benchmark copper MCU3 for three-month delivery on the
London Metal Exchange traded at $7,922 a tonne at 1114 GMT on
from $8,060 at the close on Thursday.

With the demand picture unclear during the traditional
summer slowdown, investors have been looking towards movements
in the oil and currency markets for short-term direction.

"The fact prices don't seem able to go much below $8,000 a
tonne is interesting," said Alex Heath, head of metals at RBC
Capital Markets.

"We'd normally see upwards of 100,000 (tonnes of copper)
hitting warehouses over the summer and it just hasn't happened.
The reality is there's not much copper out there with most
producers struggling to hit production targets."

Prices of the metal used widely in power and construction
have risen by more than 20 percent this year due to supply
concerns, with LME warehouse stocks below 150,000 tonnes
covering about three days of global consumption.

Copper stocks at the LME rose by 2,250 tonnes on Friday, but
were down by 4,251 tonnes to 36,839 tonnes at the Shanghai
Futures Exchange (SHFE) in the week to Thursday.

Strength in the U.S. dollar has weighed on dollar-priced
commodities as they become more expensive for holders of other
currencies, while weaker oil prices have dampened sentiment
towards commodities in general. [ID:nL1698059] [ID:nSP263767]

Analysts said some investors were waiting for the release of
U.S. employment figures at 1230 GMT as they try to gauge how
well the broader economy has weathered recent financial storms.



LEAD DROPS

Aluminium tracked copper lower, but a 1,750 tonne drop in
LME stocks to 1,124,225 tonnes lent some support. The metal used
in packaging, power and construction was trading down at $2,925
a tonne from $2,980 on Thursday.

Concerns supplies of the energy-intensive metal from China
could be threatened by coal shortage in the world's number one
producer of the metal have kept prices underpinned, analysts
said. [ID:nPEK216137]

China is considering imposing a 5 percent tax on exports of
unwrought aluminium alloy as early as in September to reduce
exports of the metal [ID:nHKG238308]

China, the world's top aluminium producer and consumer,
exported 395,961 tonnes of aluminium alloy in the first half, up
131 percent from a year earlier.

However, traders said the export tax was unlikely to have a
significant impact on prices in the broader aluminium market,
with limited volumes of aluminium alloy traded on the exchange.

Lead fell to $2,130 from $2,210 on Thursday.

Stocks at LME warehouses increased by 1,250 tonnes to
92,250, having fallen by almost 9 percent in July.

"We're at the stage where we've seen a large spike in lead
prices as stocks moved quickly from about 100,000 to 90,000
tonnes, and now we're seeing a slight shift in psychology as
stocks start to come back in," said Michael Khosrowpour at
Triland Metals.

Since slipping to a 15-month low of $1,531 a tonne on July
4, lead has rallied by more than 40 percent on a combination of
supply concerns and strong demand for the battery material.

Zinc MZN3 traded at $1,866 a tonne from Thursday's last
bid at $1,915 a tonne, nickel MNI3 at $18,300 from $18,350 and
tin MSN3 at $21,600 from $22,200.


Metal Prices at 1118 GMT
Metal Last Change Pct Move End 2007 Ytd Pct

move
LME Cu 7915.00 -145.00 -1.80 6670.00 18.67
SHFE Cu* 61440.00 -330.00 -0.53 56880.00 8.02
LME Alum 2920.00 -60.00 -2.01 2403.00 21.51
SHFE Alu* 18960.00 -175.00 -0.91 18180.00 4.29
COMEX Cu** 371.65 0.00 +0.00 303.05 22.64
LME Zinc 1855.00 -15.00 -0.80 2370.00 -21.73
SHFE Zinc* 15255.00 -325.00 -2.09 18950.00 -19.50
LME Nick 18250.00 -100.00 -0.54 26350.00 -30.74
LME Lead 2120.00 -90.00 -4.07 2550.00 -16.86
LME Tin 21500.00 -700.00 -3.15 16400.00 31.10
** 1st contract month for COMEX copper
* 3rd contact month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07