* Aluminium strikes 8-month high * Improving data lifts sentiment but doubts remain LONDON, July 24 - Copper hit a nine-month high on Friday as sentiment for the global economy and recovery in demand improved, and aluminium rallied on worries about scarce nearby material. At 1434 GMT, aluminium for three-month delivery on the London Metal Exchange hit an 8-month high of $1,816. The metal used in transport and packaging was traded at $1,814.75 from $1,777 on Thursday. Copper was at $5,536 from $5,530. Used in power and construction, it hit $5,575, its highest since mid-October. "You are certainly in an environment where there is that assumption that the economy is turning around," said David Meger, managing director at Alaron Metals Services in Chicago. "Interest rates remain low and the dollar remains under pressure, which is conducive to a commodities rally." "The market is looking down the road at this point in time (but) if things do not turn out that way and we turn around ... you are going to see at least a consolidation and a decline in these copper prices." Copper has surged 80 percent so far this year due in part to a vast buying exercise from China, the world's top copper consumer. Analysts believe Chinese demand will keep underpinning prices while investors wait for western economies to recover. Industrial metals and equities have rallied recently because a stream of improving economic and U.S. corporate data has signalled the global economy could be emerging from the worst economic downturn in 80 years. Recent upbeat data related to the euro zone services and manufacturing sectors, German business sentiment and U.S. home sales.. Other data showed an improvement in Japanese copper demand. But analysts warn global economic improvement has been spurred largely by temporary government stimulus packages, while real and sustainable economic improvement is yet to show itself. Downbeat numbers still temper optimism, such as data on Friday showing a hefty quarterly decline in British GDP, and a survey on Friday showed that U.S. consumer confidence waned in late July. ALUMINUM STOCKS FALL Inventories of aluminium fell 1,125 tonnes, just below a record near 4.6 million tonnes. As worries about the availability of nearby material supported prices, analysts said aluminium could move into backwardation, a premium for cash material over the three-month contract. To see an analysis on aluminium prices, click on:. "The possibility that LME inventories are topping out and the beginning of OECD restocking has tightened pricing," Liberum Capital said in a note. Copper stocks at LME warehouses rose 2,225 tonnes to 273,950 tonnes, their highest in a month.Stocks have risen since mid-July, reversing this year's trend of declines. But analysts attribute this rise to a temporary, seasonal lull in demand. Underpinning gains, data showed two entities controlling 30 to 40 percent of copper at LME warehouses. Earlier this week one entity held 30 to 40 percent and another held 50 to 80 percent. Zinc $3 lower at $1,696 but earlier hit a high of $1,720 to match a near 10-month high from June 11. Battery material lead touched it's highest point since June 12 at $1,781.75 but was last traded at $1,775 from $1,745, while nickel was at $16,600 from $16,400 and hit a 10-month high of $16,750. Tin was traded at $14,700 a tonne from $14,490. Tin traded in backwardation of $255, a premium for cash tin over the three-month contract, versus Wednesday's backwardation of $93. Traders remain concerned about the scale of long positions in the tin market compared with the amount of available metal in LME warehouses.

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