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METALS-Prices fall as investors flee riskier assets

* LME/ShFE arb: http://bit.ly/2wZSAEz (Updates throughout, moves dateline from Melbourne)

LONDON, Feb 6 (Reuters) - Prices of industrial metals fell on Tuesday as global stock markets plunged for a fourth day, prompting investors to cut exposure to riskier assets and strengthening the dollar.

Global shares have lost $4 trillion in value from record highs in late January, while the dollar, seen as a safer asset, has risen from three-year lows, making metals more expensive for holders of other currencies.

"We read this as a stock-driven sell-off," said ING metals analyst Oliver Nugent. "It's market contagion. There's nothing really happening on the fundamentals front."

Metals remained near multi-year highs.

COPPER: Benchmark copper on the London Metal Exchange was down 0.9 percent at $7,107.50 a tonne at 1133 GMT, still close to a four-year high of $7,312.50 hit in December.

TIME TO BUY?: Analysts at Citibank said the dip in prices could be a buying opportunity, given a pick-up in global manufacturing and supply shortfalls in some metals.

"The recent sell-off in rates and equities, and a spike in VIX (a volatility index) present an opportunity to rotate into industrial metals," they said in a report.

"We recommend asset managers raise their exposure to industrial metals over the coming month, particularly at the expense of bonds and other fixed income, consistent with... our own constructive 1H18 outlook for industrial metals most notably towards zinc and copper."

GERMAN FACTORIES: Expectations of strong demand for metals were supported by data showing that German industrial orders rose more than expected in December.

DOLLAR: The dollar reached its strongest since Jan. 25 on Tuesday against a basket of major currencies, before falling back slightly.

STEEL: Steel-related commodities were among a handful of assets that managed to evade the global market rout, helping support prices of steelmaking ingredients zinc and nickel.

NICKEL: LME nickel was 2.7 percent lower at $13,380 a tonne but remained near a 2 1/2-year peak of $14,040 reached on Jan. 29.

ZINC: LME zinc was down 1.9 percent at $3,481 after reaching $3,584 on Jan. 29, the highest since 2007.

STOCKS: Zinc was supported by a fall in on-warrant inventories available to the market in LME-registered warehouses to 83,700 after 14,650 tonnes of fresh cancellations. On-warrant stocks are down 58 percent since Oct. 20. <MZNSTX-TOTAL>

WARRANTS: Worries about a tight LME market have been reinforced by a large position holding between 80 and 89 percent of zinc warrants and cash contracts. <0#LME-WHL>

OTHER METALS: LME aluminium was down 0.9 percent at $2,192 a tonne, lead was 1.5 percent lower at $2,608.50 and tin lost 1 percent to $21,700.

(Additional reporting by Melanie Burton and Tom Daly; Editing by Edmund Blair)