FX: Copper at 19-mth high as risk appetite edges up
* Fresh fund cash seen in Q2, risk appetite buoys prices
* U.S. jobs data watched
* U.S. consumer confidence rebounds in March
(Updates comments and prices)
By Michael Taylor
LONDON, March 30 (Reuters) - Copper hit a 19-month high on Tuesday on earlier gains by the euro and a rise in risk appetite but the market was waiting for further evidence of demand recovery to support the rally.
Benchmark copper for three-month delivery on the London Metal Exchange traded at $7,839 a tonne by 1536 GMT, from $7,770 at the close on Monday. Copper's rally lifted aluminium, tin and zinc to multi-week highs.
Copper, used in power and construction, touched $7,835 a tonne, as the euro hit a one-week high against the dollar on relief that debt-laden Greece was able to raise funds from the market.
"It is of course a relief," said Andrey Kryuchenkov, analyst at VTB Capital. "It is helpful that things are more certain at the moment," he said, adding a break above the key $7,800 a tonne level had triggered further fund buying.
"But the underlying problems (in Greece) are still there and ....when you put this against the U.S. dollar it still looks more appealing, no matter what," he said.
The euro pared its gains versus the dollar, particularly after the release of the U.S. consumer confidence data, which showed a rebound in March.
A weak U.S. currency makes metals priced in dollars less expensive for holders of other currencies.
Copper is on course for a 15 percent rise this quarter, and analysts see prices maintaining the upward trend from April, as economic activity improves.
JOBS DATA EXPECTED
The key data will be Friday's non-farm payroll jobs from the U.S., which could have an impact on the market next week.
"On Good Friday, the U.S. statistical office will still publish the job figures, and all the exchanges are closed -- thank you very much," said Herwig Schmidt, head of sales at Triland Metals. "There will be a chaos on Tuesday, I expect quite a turbulent Easter."
Many financial markets will be closed on Friday and Monday for holidays.
Aluminium hit $2,314 a tonne, its highest since January 19 and was last at $2,312 a tonne versus $2,283. LME stocks for the metal, used in transport and packaging, rose 30,075 tonnes to remain near all-time highs above 4.6 million.
Aluminium stocks hit a near nine-month low at 4.513 million tonnes on March 12. Much of those stocks are tied up in finance deals, to release cash for producers and to earn banks higher returns than they would get in money markets.
In other metals, steel making ingredient nickel rose to $24,251 a tonne, just below its 21-month high of $24,498 a tonne hit on Monday.
Funds have been active in nickel. Latest LME data showed a dominant position controlling between 50-80 percent of cash warrants. The discount between the cash and three-month contract was at $35 a tonne, versus $83 on March 1.
Market sources said New-York based hedge fund Touradji Capital Management was betting on improved demand for nickel, helping the material used in stainless steel outperform other base metals this year.
LME data also showed two positions controlled between 40-50 percent of lead cash warrants. The discount between the cash and three-month contract, was at $29.50 a tonne, compared to $38.30 in mid-December.
Zinc rose to $2,390 a tonne, its highest in almost three weeks and traded at $2,380 a tonne from $2,332.
Tin also gained to an over 2-week high and was last at $18,301 a tonne from $18,025.
Battery material lead was bid at $2,167 from $2,151.
Metal Prices at 1449 GMT Metal Last Change Percent Move End 2009 Ytd Percent
move COMEX Cu 356.20 3.40 +0.96 332.75 7.05 LME Alum 2303.00 20.00 +0.88 2230.00 3.27 LME Cu 0.00 -7770.00 -100.00 7375.00 -100.00 LME Lead 2160.00 9.00 +0.42 2432.00 -11.18 LME Nickel 24215.00 215.00 +0.90 18525.00 30.72 LME Tin 18250.00 225.00 +1.25 16950.00 7.67 LME Zinc 2372.00 40.00 +1.72 2560.00 -7.34 SHFE Alu 16660.00 35.00 +0.21 17160.00 -2.91 SHFE Cu* 61690.00 -50.00 -0.08 59900.00 2.99 SHFE Zin 18910.00 -20.00 -0.11 21195.00 -10.78 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Humeyra Pamuk; editing by James Jukwey)
