(Updates with closing prices)

By Peter Hobson

LONDON, June 24 (Reuters) - Copper prices slipped on Mondayas doubts over the outcome of U.S.-China trade talks later thisweek overshadowed the effect of a weaker dollar and supplydisruption in Chile.

Benchmark copper CMCU3 on the London Metal Exchange (LME)closed 0.2% lower at $5,960 a tonne, down from a one-month highof $6,027 on Thursday.

The metal used in power and construction had recoveredslightly in recent weeks after tumbling 15% between mid-Apriland mid-June as U.S. President Donald Trump ramped up disputeswith China and Mexico.

Investors fear trade confrontations will damage economicgrowth and metals demand.

Investors are waiting for a meeting between Trump and hisChinese counterpart Xi Jinping at a G20 summit on June 28-29,said Commerzbank analyst Daniel Briesemann. urn:newsml:reuters.com:*:nL4N23V0J3

A trade deal or truce would push prices higher, whilefailure to agree would drag copper down, he said.

"Scepticism among speculative investors in particular isstill very high. These investors are still betting on lowercopper prices," he said.

TRADE WAR: Both China and the United States should makecompromises in trade talks, Chinese Vice Commerce Minister WangShouwen said on Monday. urn:newsml:reuters.com:*:nL4N23V0J3

CHINA DEMAND: "The latest Chinese macro data remainconcerning for commodities demand into 3Q with property newstarts slowing and infrastructure spending remaining subdued,"analysts at Citi said in a note.

China is the world's largest metals consumer.

U.S. ECONOMY: U.S. manufacturing activity barely grew inearly June and the service sector cooled. urn:newsml:reuters.com:*:nL2N23S0OH

GERMANY: German business morale deteriorated for the thirdmonth in a row in June. urn:newsml:reuters.com:*:nL8N23V1NF urn:newsml:reuters.com:*:nL8N23V1W5

DOLLAR: The dollar weakened further on Monday after slipping1.4% last week, making dollar-priced metals cheaper for buyerswith other currencies. .DXY FRX/

TECHNICALS: Signals are mixed for LME copper, as it failedto break resistance at $5,989 per tonne. urn:newsml:reuters.com:*:nL4N23V1G5

POSITIONING: Speculators' net short position in LME copperfell to 3.5% of open contracts as of Thursday's close, brokersMarex Spectron said.

CHILE STRIKE: Labour unions at Chile's huge Chuquicamatacopper mine voted on Saturday to reject a contract offer andcontinue their week-long strike. urn:newsml:reuters.com:*:nL2N23U00I

CHINA SCRAP: China's imports of scrap metal in May rose 8.6%from the previous month to 380,000 tonnes, customs data showedon Sunday, with scrap aluminium imports the highest since March2018. urn:newsml:reuters.com:*:nL4N23U02S

The Chinese environment ministry has also granted 240,000tonnes of quotas for imports of high-grade scrap copper, whichis being restricted from July 1. urn:newsml:reuters.com:*:nL4N23T04J

ZINC: LME zinc CMZN3 rose 2.4% in closing open-outcrytrading to $2,491 a tonne after touching $2,412, the weakestsince Jan. 4, on Friday.

OTHER METALS: LME aluminium CMAL3 ended up 1.4% at $1,793a tonne, nickel CMNI3 gained 0.4% to $12,140, lead CMPB3 rose 0.7% to $1,913 and tin CMSN3 closed 0.4% higher at$19,075.

(Reporting by Peter Hobson; additional reporting by Muyu Xu andShivani Singh; editing by David Evans, Louise Heavens and JanHarvey) ((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))