LONDON - Copper prices rose to their highest in more than a week helped by strong investment demand, a rally in global equities and bets the economic crisis is petering out.


Lead surged 7 per cent to $1,999.50 (U.S.) a tonne, its highest since late September, amid news China's Henan province has shut down 240,000 tonnes of annual lead smelting capacity on reports of lead poisoning. Lead for three months delivery on the London Metal Exchange was at $1,957.25 a tonne compared to $1,863 at the close on Friday, while copper was at $6,358 compared to $6,270.


Prices of the metal used in power and construction hit a day's high of $6,415. "This is follow through from Friday. There is a general appetite for risky assets driven by cheap money and lax monetary policy," said senior commodities strategist at Societe General, Jesper Dannesbee.


"Real demand has not improved that much. We are only moderately optimistic ... there is not much upside from here based on fundamentals but over time there will be because final demand will improve gradually through next year," he added.


Copper rallied over 5 per cent on Friday as strong U.S. housing data and positive comments about global growth from Federal Reserve chairman Ben Bernanke boosted the outlook for demand.


The metal continued higher on Monday after world shares rose to a 10-month high on the positive U.S. data and comments.


Copper has more than doubled in price this year as better than expected macro data spurred hopes for a recovery and China, the world's largest copper consumer, ramped up imports to record level.


Data out in China earlier showed refined copper imports fell 23 per cent to 292,266 tonnes in July from June, but still rose 170 per cent year on year in the first seven months.


According to Reuters calculations based on official data, China's apparent demand for refined copper fell by 10 per cent in July from June after imports dipped 23 per cent from a record.


But Evolution Securities analyst Charles Kernot said: "Imports fell but they've been importing scrap rather than refined copper so underlying demand is still there."


Among other industrial metals, aluminum, used in transport and packaging, was at $1,933 a tonne from $1,930, while tin was at $14,350 from $14,300.


Zinc hit $1,920 a tonne while nickel hit $20,239 a tonne, both their highest in more than a week. The metals were later quoted at $1,868 against $1,834, and $19,800 against $19,300, respectively.

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