(Recasts, adds comment and London dateline)

By Pratima Desai

LONDON, May 28 (Reuters) - Copper climbed on Tuesday as

the prospect of interest rate cuts, a weaker dollar and some

strong data from China encouraged buying, but elevated stocks

and rising production of the metal in the top consumer signalled

ample supplies.

Benchmark copper on the London Metal Exchange (LME)

was up 1.1% at $10,435 a metric ton at 1030 GMT. The metal used

to make cable for wiring hit a record high above $11,100 last

week as speculators and investors piled in expecting demand

growth to accelerate.

Interest rate cuts would help economic growth, while a lower

U.S. currency makes dollar-priced metals cheaper for holders of

other currencies, boosting demand.

Traders also cited robust industrial profits in China as a

reason behind copper's gains.

Much of the copper buying since early March has been based

on the idea of consumption outstripping supply due to growth

areas including electric vehicles, automation and artificial

intelligence.

"I buy the future demand story. I just think prices have got

way ahead of where the fundamentals are. The market looks

relatively well supplied currently, particularly in China," said

BNP Paribas analyst David Wilson.

"Shanghai copper stocks are up 240% year-on-year and there

are deliveries going into LME warehouses. China's daily refined

copper production rate is the joint highest in record."

On a daily basis, China's average copper output stood at

38,000 tons in April.

Copper stocks in warehouses monitored by the Shanghai

Futures Exchange at 290,376 tons are near four-year highs and

compare with numbers near 30,000 tons in January .

Meanwhile, copper inventories at 114,750 tons

have been increasing since the middle of May.

Later this week, industrial metals markets will be watching

U.S. inflation data for clues to the timing of interest rate

cuts by the Federal Reserve and surveys of purchasing managers

in China's manufacturing sector to assess demand prospects.

In other metals, aluminium was up 1.5% at $2,702,

zinc rose 1.3% to $3,098, lead advanced 1.5% to

$2,333, tin added 2.1% to $33,945, nickel gained

0.8% to $20,405.