METALS-Profit-taking weighs on copper, dollar supports

* China's year-to-date copper imports down but still strong

* Falling LME stocks and dollar weakness offer support (Recasts, adds comment, changes dateline from Melbourne)

LONDON, Sept 7 (Reuters) - Copper prices slipped on Thursday as doubts about the strength of demand in top consumer China triggered profit-taking, though declines were kept in check by a weaker dollar on receding expectations of an imminent rise in interest rates.

Benchmark copper on the London Metal Exchange was down 0.3 percent at $6,880 a tonne by 1010 GMT. The price had touched a three-year high of $6,970 this week, representing a gain of nearly 25 percent so far this year.

"The dollar has been a major tail wind. Chinese demand isn't bad, but it is being overestimated. Look at data on non-tradeable materials like cement, where demand growth is still low," said Liberum analyst Richard Knights.

"One influence has been the Chinese regulator pushing wealth management products towards commodities."

WEALTH: China said in June it will encourage wealth management firms to invest in commodity futures to promote its domestic derivatives industry and raise Chinese funds allocation to commodities.

DOLLAR: A lower U.S. currency makes dollar-denominated metals cheaper for non-U.S. firms, which could eventually boost demand. This relationship is used by funds to generate buy and sell signals using numerical models.

DEMAND: China accounts for nearly half of global copper demand estimated at about 23 million tonnes this year.

SCRAP: Optimism in the copper market surged in July after news of a Chinese proposal to ban imports of some scrap metal from the end of 2018.

"While the details are vague, we understand it is targeted at category 7 scrap, which includes low-grade copper scrap such as electric motors or metallic hardware," ANZ analysts said in a note.

"China imported about 3.3 million tonnes copper scrap in 2016. We believe a majority of this would be in category 7. However, due to the low grade, its share is closer to 25 percent on a contained-copper basis. This should see import demand of refined copper remain strong over the medium-to-longer term."

IMPORTS: China's imports of refined copper rose nearly 13 percent to more than 283,000 tonnes in July, but the year-to-date total is down more than 21 percent to about 1.83 million tonnes.

INVENTORIES: Also supporting prices are falling stocks of copper in LME-approved warehouses. At 210,725 tonnes, inventories are down more than 40 percent since early May. <MCUSTX-TOTAL>

ECB: The market is awaiting a meeting of the European Central Bank, at which policymakers could strike a note of caution about the strength of the euro. Continued strength of the European single currency could undermine the region's exports and economic growth and keep inflation below target.

PRICES: Aluminium was down 0.4 percent at $2,096 a tonne, zinc fell 0.2 percent to $3,090, lead slipped by 0.2 percent to $2,337, tin was down 0.3 percent at $20,720 and nickel ceded 0.3 percent to $12,125.

(Editing by David Goodman)