(Adds quotes, updates prices, changes dateline from MELBOURNE)
LONDON, June 30 (Reuters) - Copper prices dipped on Friday, pressured by a firmer dollar and a rise in inventories, offsetting better than expected factory growth in top metals consumer China.
China's factories grew at the quickest pace in three months in June, buoyed by strong new orders in a sign of stabilising growth, though analysts expect a further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks.
But that news, which supported prices during Asian trading, was countered during European activity.
"We also had the dollar rebounding a little bit, especially against the euro and that is causing some headwinds for the metals," said analyst Carsten Menke at Julius Baer in Zurich.
"I still see the copper market as rather loose, not as tight as some other analysts see it. From that perspective I think that lower prices, that is below $5,500, would be justified."
* LME COPPER: London Metal Exchange copper was down 0.4 percent at $5,919 a tonne at 1007 GMT, eroding a 1 percent gain in the previous session when prices touched their highest since March 30 at $5,963.50.
* LME copper was eyeing a fourth consecutive quarter of gains and was on track to advance 7 percent for the first half.
* LME INVENTORIES: Copper stocks in LME warehouses rose 6,400 tonnes to 249,700 tonnes, LME data showed, indicating that supplies were adequate.
* ALUMINIUM - LME aluminium dipped 0.3 percent to $1,910. Prices are up 13 percent this year on concern about an environmental crackdown that is expected to cut production in the winter.
"I think most of these expectations are already priced into aluminium, that's why I don't see much upside from these levels. But I'm reluctant to be outright bearish in aluminium because the risk of the Chinese government acting is just too high," Menke said.
* LME LEAD: Lead fell 0.9 percent to $2,292.50, but has rallied 14 percent in the first half to become the best performing base metal so far this year. Prices have been supported by tightly held available exchange stocks and as China has shipped in more metal.
* ESCONDIDA: Copper production at Chile's Escondida copper mine, the world's largest, fell 63 percent in the first quarter of 2017 from a year earlier amid a prolonged strike, the mine said late on Thursday.
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(Additional reporting by Melanie Burton in Melbourne; Editing by Robin Pomeroy)