UPDATE 7-Aluminium falls to 1-month low as stocks surge

* Aluminium prices falls to 1-month low

* Stocks at LME warehouses jump

* Power shortages in China highlighted (Updates with New York closing copper prices, adds analyst comment)

By Pratima Desai

LONDON, July 18 (Reuters) - Aluminium prices dropped to 1-month lows on Friday as stocks soared and traders priced in growing expectations of an oversupplied market this year.

Aluminium on the London Metal Exchange MAL3 fell at one point to $3,020 a tonne, the lowest price since June 17, before closing at $3,034 compared with $3,127 on Thursday.

The latest sell-off was triggered by news of rising stocks in LME warehouses, which rose 4,325 tonnes to more than 1.1 million tonnes, the highest since May 2004.

"There's no real shortage of aluminium as we've seen from the large stock builds this week," said Lehman Brothers analyst Michael Widmer.

"It's hard to make a case for prices to move higher but fears of supply disruptions in China due to power shortages and relatively high energy costs are supporting the market."