* China's refined copper daily apparent demand up in September * Euro zone industrial new orders rise in August * Price rally may be short-lived- analysts By Silvia Antonioli LONDON, Oct 24 (Reuters) - Copper rose more than 4 percent on Monday as encouraging manufacturing data from top metals consumer China and hopes that European leaders may soon strike a deal to tackle the debt crisis boosted investor confidence. Benchmark copper on the London Metal Exchange , untraded in official rings, was bid at $7,380 a tonne, from a close at $7,145 per tonne on Friday. Earlier, the metal used in power and construction rose by more than 4 percent to hit a session high of $7,450 a tonne but it still remains almost a third down from a record high of $10,190 a tonne reached in February. News that France and Germany are close to a deal to leverage the euro zone bailout fund boosted market sentiment and pushed the euro to a six-week high versus the dollar. A weaker U.S. currency makes dollar-priced commodities more affordable for holders of other currencies. "The drive is from there being more optimism on Europe getting their act together now there are concrete plans on the banks recapitalising and haircuts of 50 percent on Greek bonds," said Credit Agricole analyst Robin Bahr. "Leverage on the ESEF (European financial stability fund) has helped create more optimism in Europe, leading to a stronger euro that helps the metals market. China's PMI rose... which diminishes the risk of China having a hard landing," Bahr added, underlining that China consumes 35-40 percent of the global metals supply so it is a key factor for industrial metals prices. ROBUST DEMAND Encouraging manufacturing data from China soothed investor fears that an abrupt slowdown in the world's second largest economy might seriously affect base metals demand prospects. China's vast manufacturing sector expanded moderately in October to snap three months of contraction, reflecting the resilience of robust domestic demand, although the data still reflected slower growth due to tighter credit conditions. "Trading was firm in Shanghai overnight and China's preliminary PMI is strong while showing the persistent tightening and restraint on growth," said Andrey Kryuchenkov, analyst at VTB Capital. "The official results at the start of next month may have further effects." China's daily apparent demand for refined copper increased 3.3 percent month on month in September and 14.7 percent from a year earlier due to a multi-month high of monthly imports, extending an 18.8 percent gain in August, Reuters calculations based on official Chinese data showed on Monday. Also boosting investor confidence, euro zone industrial new orders rose more than expected in August from the previous month, according to data released by the EU's Statistics Office. Many however think that this metals price rally may be short-lived as market sentiment has been very volatile lately and the debt crisis in Europe has not been averted yet. "The outcome of industrial metals is in our view binary," Credit Suisse said in a research note. "A credible package to address debt problems would be positive. A disappointing solution could lead to a break of the trend lines to the downside. In any case, we think that it is currently too early to buy into the sector." Tin untraded in official rings, was bid at $21,755 from $21,670 while zinc , used to galvanize steel, traded at $1,861 from $1,805 Friday's close. Earlier, zinc rose almost 5 percent to hit a session high of $1,893 a tonne. Battery material lead untraded in rings, was bid at $1,965 from $1,915 and aluminium changed hands at $2,180.50 from $2,125. Nickel traded at $19,100 in official rings from $18,800. The world's top nickel and palladium producer, Russia's Norilsk Nickel , said output of these two metals declined in the first nine months of this year from the same period a year ago, but did not explain the decline. It said in a statement that nickel output was 215,481 tonnes in January-September, down 2.2 percent. Metal Prices at 1212 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2010 Ytd Pct move COMEX Cu 335.70 13.60 +4.22 444.70 -24.51 LME Alum 2178.00 53.00 +2.49 2470.00 -11.82 LME Cu 7391.75 246.75 +3.45 9600.00 -23.00 LME Lead 1965.50 50.50 +2.64 2550.00 -22.92 LME Nickel 19082.00 282.00 +1.50 24750.00 -22.90 LME Tin 22001.00 801.00 +3.78 26900.00 -18.21 LME Zinc 1862.75 57.75 +3.20 2454.00 -24.09 SHFE Alu 16490.00 325.00 +2.01 16840.00 -2.08 SHFE Cu* 54750.00 3080.00 +5.96 71850.00 -23.80 SHFE Zin 15040.00 740.00 +5.17 19475.00 -22.77 ** 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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