METALS-Copper slips on firmer dollar, demand uncertainty

(Updates prices, adds U.S. data)

By Eric Onstad

LONDON, Jan 24 (Reuters) - Copper prices crept lower on Tuesday, pressured by a firmer dollar, amid uncertainty over a potential global recession and demand in top metals consumer China.

Three-month copper on the London Metal Exchange (LME) slipped 0.4% to $9,320 a tonne by 1545 GMT, having surged 13% since Jan. 5.

"You could argue that it would be a good time to see some profit-taking," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

"But the fact that it's not emerging means the market is keen on holding onto the longs and waiting for the next move, which will have to be confirmed by an actual pick-up in demand from China."

Volumes were thinner than usual because Chinese markets were closed for the Lunar New Year holiday.

Physical copper consumption has been weak in China, but investors are betting that the recent lifting of COVID-19 controls will boost activity and demand in coming months.

The dollar index extended gains after U.S. data, making dollar-priced commodities more expensive for buyers using other currencies.

The data showed U.S. business activity contracted for the seventh straight month in January, but also indicated input prices for both services firms and goods producers rose month-over-month for the first time since May.

That could encourage further aggressive rate hikes by the Federal Reserve, an economist said.

LME nickel jumped 3.2% to $29,015 a tonne after Russian metals producer Norilsk Nickel said it expects its nickel production to fall this year.

The benchmark LME spread for lead , or the gap between cash metal and the three-month contract, moved to a discount of $6 a tonne from a premium of $63 nearly three weeks ago, indicating more plentiful near-term supplies.

In other metals, aluminium gained 0.6% to $2,652 a tonne, tin climbed 1.5% to $29,950, lead rose 0.8% to $2,071.50 while zinc dipped 0.1% to $3,417.

For the top stories in metals and other news, click (Reporting by Eric Onstad Editing by David Goodman and Vinay Dwivedi)