LONDON, April 12 (Reuters) - Copper rose to a 20-month high on Monday due to a stronger euro and investment demand, boosted by robust import figures from China, the world's top consumer of the metal.
Other commodity markets such as oil, precious metals and soft commodities also rose as the euro strengthened versus the U.S. dollar after euro zone finance ministers agreed on a rescue package for Greece, supporting risk appetite.
A weaker dollar also makes commodities denominated in the U.S. unit cheaper for holders of other currencies.
Aluminium rallied to its highest in 18 months, after UC RUSAL, the world's biggest producer of the metal, reported robust earnings and unveiled plans to launch a physically backed exchange traded fund (ETF).
Copper for three-months delivery on the London Metal Exchange rose to $8,043.75 a tonne, its highest since Aug. 1, 2008 and was at $7,990 a tonne by 0940 GMT, versus a last quote of $7,920/7,925 a tonne on Friday.
"To some extent this has never been a fundamental story, it's been the weight of money," said Robin Bhar, analyst at Credit Agricole.
"I just got back from CESCO copper conference in Chile and everybody was bullish...When it comes to copper, it's a balanced market, moving into deficit and it's the China story again."
China's strong demand for copper showed no let-up in March, with imports rising rapidly despite higher prices as factories returned to work in earnest after the long Lunar New Year holidays.
Imports of unwrought and semi-finished copper surged 41.6 percent on the month, surpassing estimates by traders and analysts for the second straight month and reflecting strong term and financing inflows to the country.
"Should the price go above $8,000 a tonne, it would send a signal for more buying," analyst Eugen Weinberg at Commerzbank said.
The price of copper, used extensively in construction and wiring, has gained around 8 percent since the start of the year, and is trading around 10 percent below its all-time high of $8,940 a tonne, struck in July 2008.
ETF BOOST
Potential investor interest drove aluminium higher, after Russia's UC RUSAL, the world's biggest aluminium producer, said it was considering launching a physically backed aluminium exchange traded fund (ETF), comprising one million tonnes of metal or more.
"That's pretty bullish news," Bhar said. "It will appeal to the investors. These (ETFs) are low cost ways to getting exposure," he said.
Three-month prices have rallied to $2,431 a tonne, their highest since October 1, 2008. The power-intensive metal was at $2,423.75 a tonne, versus Friday's $2,406 a tonne.
"By all accounts, the market's running in a surplus of at least 2 million tonnes, so if you could put half of that surplus locked away in an ETF, I'd think that has to be positive for prices," he said.
Aluminium stocks fell 5,350 tonnes to 4.57 million tonnes, after hitting a record high of 4.64 million tonnes in January. But traders say a hefty amount of the material is tied up in financing deals.
Zinc rose to $2,425 a tonne from Friday's $2,415. Tin eased $40 to $18,700 a tonne, while lead was at $2,345.75 a tonne from $2,330.
Nickel rose to $25,565 a tonne from Friday's $25,200. Metal Prices at 0939 GMT Metal Last Change Percent Move End 2009 Ytd Percent
move COMEX Cu 358.45 0.00 +0.00 332.75 7.72 LME Alum 2417.00 11.00 +0.46 2230.00 8.39 LME Cu 7980.00 85.00 +1.08 7375.00 8.20 LME Lead 2339.00 9.00 +0.39 2432.00 -3.82 LME Nickel 25505.00 305.00 +1.21 18525.00 37.68 LME Tin 18600.00 0.00 +0.00 16950.00 9.73 LME Zinc 2419.00 4.00 +0.17 2560.00 -5.51 SHFE Alu 16870.00 180.00 +1.08 17160.00 -1.69 SHFE Cu* 62550.00 -20.00 -0.03 59900.00 4.42 SHFE Zin 19315.00 105.00 +0.55 21195.00 -8.87 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
