By: Perrine Faye London 27/06/2011 - Base metals cut losses during Monday's LME premarket trading, matching a similar improvement in financial markets on hopes that Greece will get more aid and avoid a default that could spread to other EU economies. Copper climbed back above the $9,000-per-tonne mark while aluminium reverted to the upside, climbing above $2,500. "They're holding up well - it looks like Greece will get more funding, either from the EU or China," a trader said. "A lot of people are long copper at the moment and we're seeing continuous dip buying below $9,000.” The US dollar erased initial losses as the euro climbed back near $1.42, while equities turned slightly firmer on hopes that the Greek parliament will approve on Wednesday a $40 billion austerity plan. This would open the door for more international aid by the EU, with Chinese Premier Wen Jiabao - currently on an official visit in Europe - also pledging to support the euro if necessary. China's own efforts to cap inflation below five percent are also under scrutiny - slower economic growth and bank loan restrictions would affect copper demand from the number one consumer. But physical demand from China picked up this month after a quiet first part of the year and the lower level of domestic stocks is raising expectations of increased imports in the coming months. A positive LME inventory report also helped cap the downside this morning, with stock declines seen in all metals bar lead. COPPER BACK ABOVE $9,000 Copper climbed back above $9,000, having hovered either side of this pivotal level since the start of June. It was last at $9,015 per tonne, down $35 from Friday but off earlier lows below $8,950, with resistance at $9,145. LME-registered stocks fell a net 3,175 tonnes to a one-month low of 470,525 tonnes, with small declines in South Korea and Singapore pointing to improved demand in China. But cancelled warrants - the metal earmarked for removal - dropped almost 14 percent to 29,350 tonnes. "While financial investors are currently not giving any support to copper prices, there is still high price potential here in our view in case they start to increasingly bet on rising prices in the next few weeks and months," analysts at Commerzbank said. Aluminium erased earlier small losses to trade up $2 at $2,502 after holding above its 200-day moving average of $2,478 and LME stocks fell for the 23rd day in a row - these were down 11,475 tonnes to 4.533 million tonnes, although cancelled warrants dropped by the same amount. Nickel also cut losses to $22,070, down $80, with stocks down a net 318 tonnes to 109,554 tonnes and cancelled warrants up 9.4 percent. Lead, which climbed on Friday on technical buying and strong battery demand in China, was just $20 lower this morning at $2,560. Lead stocks rose a net 750 tonnes but this was more than offset by a 2,875-tonne increase in cancelled warrants. Zinc was just $5 softer at $2,249 as stocks dropped a net 475 tonnes, while tin was up $125 at $25,050 following a stock decline of 230 tonnes. Steel billet was indicated at $550/565, down $8. Cobalt was quoted at $34,000/39,000, unchanged from Friday, and molybdenum was also flat at $32,500/33,900.

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