METALS-Copper hits 10-day high, helped by demand outlook

 * Greece resolution could help boost metals

 * Copper stock draw could be decelerating

 * Coming up: U.S. consumer confidence on Tuesday

 (Recasts, updates with New York closing copper price, adds
New York dateline/byline)

 By Chris Kelly and Pratima Desai

 NEW YORK/LONDON, April 26 (Reuters) - Copper rose to a
10-day high on Monday, as optimism about economic growth and
demand for the red metal gained the upper hand following strong
housing market data from the United States.

 Copper for July delivery HGN0 on the New York Mercantile
Exchange's COMEX division rose 1.75 cents to settle at $3.5480
per lb, after dealing between $3.5355 and $3.5805, its loftiest
level since April 16.

 On the London Metal Exchange, benchmark copper CMCU3
touched $7,865 a tonne, another peak dating back to April 16,
before ending at $7,810 a tonne from Friday's close at $7,745.

 Economic prospects brightened after a double-dose of
positive U.S. readings on Friday. New orders for durable
manufactured goods, excluding transportation, posted their
largest gain in over two years in March and new home sales
climb to an eight-month high -- both indicating a pick-up in
the pace of growth. [ID:nN23173134]

 "The economic data that we had out of the U.S. last week --
durable goods, housing -- was well above expectations," said
Gayle Berry, an analyst at Barclays Capital. "This set the tone
for the (metals) complex, and then this morning we had positive
inventory data for all of the base metals."

 "Overall, we can expect to see higher prices in the second
quarter, but that's not to say we won't see any pullback," she
added. "The market will be watching Greece from a sentiment
viewpoint, rather than fundamental impact."

 Confusion over aid for debt-stricken Greece arose on Monday
after German Chancellor Angela Merkel said the euro zone
member, which on Friday had requested emergency aid, must
commit to further savings measures and show it can return to a
sustainable economic path before Germany can approve aid.
[ID:nBEB004453].

 Traders are also waiting for the conclusion of the U.S.
Federal Reserve's two-day meeting on Wednesday. [FED/R] [USD/]

 CAVEATS

 Boosting sentiment in metals markets were falling stocks
across the board for all LME metals. <0#LME-STOCKS>

 Stocks of copper fell 1,025 tonnes to 506,125 tonnes.

 However, LME copper stocks have fallen by nearly 49,000
tonnes since the middle of February. Most of that left LME
warehouses before the end of March. In contrast, the draw in
April so far is only 6,450 tonnes.

 "It tells me that for now at least, availability is keeping
up with demand, markets are a little more balanced, which may
be a function of lower imports into China," Dan Brebner,
analyst at Deutsche Bank said.

 Heavy Chinese imports of copper over the past year have
helped underpin copper prices. [ID:nTOE63K02M]

 China is the world's largest consumer of copper. Many
investors fear the country may be overheating and that it is
about to put the brakes on growth to rein in inflation.

 "The Chinese government is already taking measures to cool
speculation in the property market," Macquarie said in a note.

 "But these measures include things that will lead to
stronger, and not weaker construction activity in the short run
-- such as releasing more land and allowing developers to build
more to ease the shortage of new properties."

 Aluminum CMAL3 ended at $2,316 a tonne from Friday's last
bid at $2,332 and zinc CMZN3 at $2,441 from $2,405. Lead
CMPB3 closed at $2,350 from $2,300 and tin MSN3 at $19,145
from $19,000.

 Stainless steel ingredient nickel CMNI3 closed at
$27,155, near recent two-year highs, from $27,000 on Friday.

 Nickel's gains have partly been fueled by falling stocks --
down more than 20,000 tonnes since hitting a record high of
166,476 tonnes on February 5.
 Metal Prices at 1832 GMT
Metal        Last      Change  Pct Move   End 2009   Ytd Pct
move
COMEX Cu       352.70        1.55     +0.44     334.65    
5.39
 LME Alum      2305.00      -15.00     -0.65    2230.00    
3.36
 LME Cu        7785.00       40.00     +0.52    7375.00    
5.56
 LME Lead      2335.00       35.00     +1.52    2432.00   
-3.99
 LME Nickel   27110.00      110.00     +0.41   18525.00   
46.34
 LME Tin      19050.00       50.00     +0.26   16950.00   
12.39
 LME Zinc      2430.00       25.00     +1.04    2560.00   
-5.08
 SHFE Alu     16610.00       60.00     +0.36   17160.00   
-3.21
 SHFE Cu*     61450.00      850.00     +1.40   59900.00    
2.59
 SHFE Zin     19185.00      195.00     +1.03   21195.00   
-9.48
 ** 1st contract month for COMEX copper * 3rd contract month
for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

 (Additional reporting by Michael Taylor; Editing by Carole
Vaporean)

Source: http://www.reuters.com/article/idUSLDE62L16720100426?type=marketsNews