* Greek debt plan boosts risk appetite, supports euro

Funds News | ETFs News

* Stock drawdowns signal demand rise outside China

* Coming Up: Reuters/Univ of Mich consumer data at 1355 GMT

(Updates official prices, adds detail)

By Michael Taylor

LONDON, March 26 (Reuters) - Copper hit a two-week high on Friday due to improved risk appetite and a weak dollar after euro zone leaders agreed on a plan to help Greece with its debt burden.

Benchmark copper for three-month delivery CMCU3 on the London Metal Exchange was untraded in official rings but last bid at $7,530 a tonne from $7,435 at the close on Thursday. Copper, used in power and construction, hit a session high of $7,570.

"Currencies have had a big influence over the past few days," said Daniel Major, an analyst at RBS Global Banking & Markets. "Overnight, news and a bit more clarity on the bailout package for Greece, has had a general positive risk-tone as well as a stronger euro."

The euro rose from a 10-month low against the dollar after euro zone leaders agreed on a safety net for Greece, although uncertainties remained over how Athens' debt burden would be managed in practice. [USD/]

Euro zone leaders agreed a package under which Athens would receive both bilateral loans from euro zone partners and International Monetary Fund funding if it faced severe difficulties. [ID:nLDE62N2R1]

A weak U.S. currency makes metals priced in dollars less expensive for holders of other currencies.

"The trend into second and third quarters will continue to be lower for base metals," Major added.

"You have still got large inventory overhang ... and idle capacity that is cash positive at these levels (which) producers are looking to bring that back on."

Copper prices soared 140 percent last year, on a combination of a weaker dollar, fund buying, improving macro data and buying from China, the world's top metals consumer.

HOPE

Recent drawdowns in LME inventories have offered hope that demand outside China is improving.

Copper stocks fell 1,900 tonnes to 516,925 tonnes -- its lowest level since early January, having peaked at 555,075 tonnes in mid-February -- its highest since October 2003.

Stocks of aluminium, used in transport and packaging, slipped 6,975 tonnes to remain near record highs at 4.57 million tonnes but down from 4.61 million tonnes hit on March 17.

A large portion of those aluminium stocks are tied up in finance deals, to release cash for producers and to earn banks higher returns than they would get in money markets. [ID:nGEE5BA277]

"Inventory levels at the LME have topped out," Tobias Merath, an analyst at Credit Suisse said. "We think (drawdowns) is the first sign of the restocking process along the supply chain in developed countries."

For graphics showing global copper, aluminium and zinc stocks, click: here

Aluminium CMAL3 traded at $2,233 in LME rings versus $2,222.

Steel making ingredient nickel CMNI3 traded at $23,625 -- its highest since June 2008 -- from $22,825, while tin CMSN3 was untraded but last bid at $17,750 from $17,600.

Speculators have been active in the nickel market in recent weeks, with LME data showing a dominant position controlling between 50-80 percent of cash warrants. [LME/WC] [ID:nLDE62L1ZR]

The discount between the cash and three-month contract MNI0-3 is at $19 a tonne, from $83 on March 1.

For more on nickel's rally this year, click [ID:nN26335339]

Battery material lead CMPB3 was untraded in LME rings but last bid at $2,115 from $2,077, with LME data showing lead stock rose 250 tonnes to 172,250, their highest since mid-2003. <0#LME-STOCKS>

Lead could rise further after an industry executive said China's refined lead consumption should rise 20 percent in 2010 as production of lead-acid batteries rises 25 percent. [ID:nBJI002270]

Zinc CMZN3 was at $2,268 a tonne in LME rings from $2,245.

Cancelled warrants -- material earmarked for delivery from LME warehouses -- could lift metals prices further. On Thursday, zinc cancelled warrants were at 13,900 tonnes compared with 4,000 tonnes on Feb. 25.

Metal Prices at 1316 GMT Metal Last Change Pct Move End 2009 Ytd Pct

move COMEX Cu 341.00 3.90 +1.16 332.75 2.48 LME Alum 2225.00 3.00 +0.14 2230.00 -0.22 LME Cu 7509.00 74.00 +1.00 7375.00 1.82 LME Lead 2096.00 19.00 +0.91 2432.00 -13.82 LME Nickel 23475.00 650.00 +2.85 18525.00 26.72 LME Tin 17725.00 125.00 +0.71 16950.00 4.57 LME Zinc 2251.00 6.00 +0.27 2560.00 -12.07 SHFE Alu 16560.00 180.00 +1.10 17160.00 -3.50 SHFE Cu* 60160.00 840.00 +1.42 59900.00 0.43 SHFE Zin 18610.00 210.00 +1.14 21195.00 -12.20 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

(Editing by Sue Thomas)