MARKETS-METALS (UPDATE 3) * China trade data support Q4 copper revival * Eyes on U.S. FOMC meeting * Coming Up: US housing sales data for 1230 GMT (Recasts, adds comment/detail, pvs Singapore) By Melanie Burton LONDON, Sept 21 (Reuters) - Copper steadied on Tuesday ahead of a U.S. Federal Reserve meeting that could herald an easier monetary policy, which could undermine the dollar and boost base metals. Three-month copper on the London Metal Exchange was last seen at $7,714 per tonne at 1020 GMT, up from $7,715 at the close on Monday. The metal, used in power and construction, on Monday hit $7,812 a tonne, its highest since April 26. The Federal Open Market Committee holds its one-day meeting on Tuesday and an announcement is expected at 1815 GMT. "Clearly it's going to be the macro themes driving risk appetite ahead of the FOMC meet. As well, I think it's going to be level, choppy trading with China out of the market," Daniel Major of RBS said. The U.S. central bank is expected to hold interest rates at a record low of 0.0 to 0.25 percent but markets are watching for a tonal shift which may suggest it thinks the flagging U.S. recovery requires a fresh liquidity injection. National holidays in China this week have undermined volumes with more than 3,700 lots or 92,500 tonnes -- about half that on a typical day -- having changed hands on the LME's electronic trading platform. However, Chinese trade statistics released overnight were relatively supportive for refined copper. Major added: "They are consistent with a more firm outlook, perhaps reflecting ... restocking ahead of the fourth quarter." DOLLAR FLIRTING China's demand for refined copper rose strongly in August, leading a broad increase in apparent consumption of metals, Reuters calculations based on official Chinese data showed. At 662,179 tonnes, copper demand was 22 percent higher than a year earlier, the data showed on Tuesday. China is the world's top consumer of base metals, accounting for more than 30 percent of global consumption estimated at around 19 million tonnes this year. Currency markets were supportive for industrial metals with the dollar flirting with new five-week lows against the euro. A weaker dollar makes commodities cheaper for holders of other currencies. Analysts also say that if the U.S. pumps more money into the economy, it will further boost fund buying as cash is funnelled towards assets such as equities and commodities -- perceived to be risky by some investors. A growing trend of falling LME inventories has also helped overall sentiment in recent months. Latest LME data showed that LME stocks fell across all major contracts bar lead. Copper stocks slipped 2,475 tonnes to 382,500 tonnes, having fallen from 6-1/2 year highs at 555,075 tonnes in mid-February. Cancelled warrants, or copper tagged for removal from LME-registered warehouses stand at 29,175 tonnes, or 7.7 percent of the total, up from five percent at the start of June. Aluminium was at $2,215 per tonne, up from $2,195 per tonne on Monday. The metal used in transport and packaging touched $2,223 on Monday, its highest level since Aug. 6. LME stocks for the metal shed 3,950 tonnes to 4.38 million tonnes, down from a record above 4.64 million tonnes in January. Prices have been bolstered by financing deals, which are said to have tied up about 70 percent of LME aluminium stocks and talk of a physically backed exchange-traded product. Three-month tin on the LME has already hit a succession of two-year highs on the back of tightenening supply from top exporter Indonesia. "Given the heavy rainfalls, which are causing huge disruption to mining, only 80,000 tonnes of tin is set to be exported this year, 19 percent less than last year," Commerzbank said in a note. "Furthermore, local stocks, particularly of smaller producers, have been largely absorbed. The price of tin should continue to find support from the lower supply." Steel ingredient nickel was at $23,045 a tonne from $23,050 on Monday. Battery material lead was at $2,165 from $2,195, zinc slipped to $2,167 from $2,180 and tin was at $23,275 down from $23,500. Metal Prices at 1017 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 350.50 0.60 +0.17 334.65 4.74 LME Alum 2205.00 10.00 +0.46 2230.00 -1.12 LME Cu 7718.00 3.00 +0.04 7375.00 4.65 LME Lead 2155.00 -40.00 -1.82 2432.00 -11.39 LME Nickel 22960.00 -90.00 -0.39 18525.00 23.94 LME Tin 23150.00 -350.00 -1.49 16950.00 36.58 LME Zinc 2159.00 -21.00 -0.96 2560.00 -15.66 SHFE Alu 15725.00 -35.00 -0.22 17160.00 -8.36 SHFE Cu* 59830.00 -420.00 -0.70 59900.00 -0.12 SHFE Zin 17805.00 -300.00 -1.66 21195.00 -15.99 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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