By Julie Crust LONDON, Nov 10 (Reuters) - Copper jumped almost 10 percent on Monday, pulling all industrial metals higher, on hopes that China's $600 billion economic stimulus plan will boost demand. China, the world's biggest copper user, on Sunday approved 4 trillion yuan ($586 billion) in new government spending between now and 2010. [ID:nN09395080] "Overall this is good news for metal consumption but it is going to take time," said Barclays Capital analyst Gayle Berry. "It was a slightly larger spending plan than our economists had expected but it is needed because the slowdown in the exports market has been so rapid." London Metal Exchange copper MCU3 rallied as high as $4,120.5 a tonne, up 9.7 percent, from $3,755 a tonne at the close on Friday. It was trading at 4,075 at 1136 GMT. However, prices for copper have slumped more than 50 percent from a record high of $8,940 in July amid slowing demand. Inventories of the metal, used in construction and power, rose 6,050 tonnes to 260,850 tonnes, the highest since March 2004. Copper stocks have jumped almost 23,000 tonnes so far in November. "This is not overly surprising given the state of the physical markets, particularly in the U.S. and Europe," Berry said. China's stimulus plan and a pledge by the G20 group, representing 90 percent of the world's economy, to take all necessary measures to get financial markets back on their feet lifted all industrial metals. "There will be some direct impact of this on metals demand, but it's the trickle-down effect that will really give consumption a boost -- general spending by the Chinese public," a dealer in Perth said. Base metals were also lifted by the weaker U.S. currency against the euro which made dollar-priced metals cheaper for holders of other currencies. [USD/] Nickel MNI3 jumped almost 12 percent boosted by short-covering as investors who had bet on lower prices bought back their positions. "We have seen that over the past couple of weeks where the gains from short covering have been really quite substantial and that is a reflection of how large a short position has been established on nickel," said Berry. The volatility in nickel prices is likely to continue over the next few months, she added. The metal soared as high as $12,400 a tonne from Friday's last bid of $10,975. However, prices are down over 50 percent percent so far this year on lower demand from stainless steel producers. Aluminium MAL3 rose as high as $2,040, a 4.1 percent gain, from $1,960 on Friday. LME inventories posted another jump -- up 11,125 to 1.55 million tonnes -- but prices were supported by an announcement that a $10.6 billion aluminium joint venture between Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) and Saudi-based Maaden 1211.SE could be delayed by one or two years due to the global financial crisis. [ID:nLA174273] Zinc MZN3 rallied 7.2 percent to a session high of $1,170 from a last bid of $1,091 a tonne. Oz Minerals Ltd (OZL.AX: Quote, Profile, Research, Stock Buzz) the world's second largest zinc miner and a major supplier of copper, lead and nickel to China, was the latest miner to say it is reviewing operations amid sharply lower metals prices and tighter credit markets. [ID:nSYD418226] Lead MPB3 jumped 6.2 percent to $1,445 from $1,361 a tonne, while tin MSN3 gained 4.8 percent to a high of $15,300 from the last bid of $14,600 on Friday. Metal Prices at 1142 GMT Metal Last Change Pct Move End 2007 Ytd Pct move LME Cu 4065.00 310.00 +8.26 6670.00 -39.06 SHFE Cu* 31000.00 1220.00 +4.10 56880.00 -45.50 LME Alum 2035.00 75.00 +3.83 2403.00 -15.31 SHFE Alu* 13870.00 125.00 +0.91 18180.00 -23.71 COMEX Cu** 169.25 0.00 +0.00 303.05 -44.15 LME Zinc 1160.00 60.00 +5.45 2370.00 -51.05 SHFE Zinc* 9520.00 220.00 +2.37 18950.00 -49.76 LME Nick 12025.00 620.00 +5.44 26350.00 -54.36 LME Lead 1425.00 64.00 +4.70 2550.00 -44.12 LME Tin 14950.00 50.00 +0.34 16400.00 -8.84 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Julie Crust; editing by Anthony Barker)

Source