Shanghai aluminium rose about half a percent at 14,630 yuan a tonne, and the third-month zinc contract was up 2.1 percent at 14,600 yuan at the opening.

 Financial markets around the world tumbled with renewed
selling frenzy as concern mounted that a record EU/IMF bailout
for Greece would not stop a debt crisis spreading in the euro
zone. [ID:nLDE6430PO]

 The Greece woes also helped sink the euro to fresh one-year
lows. [USD/] [ID:nSGE64400A]

 "There's negative news all over the place -- Greece, mining
tax in Australia, and strong dollar. China is not contributing
any good news either, as policy and the equities market are not
supportive," said Li Rong, an analyst at Great Wall Futures.

 The next support level for London copper is around the
previous low at $6,225, while Shanghai copper may head down to
just above 50,000 yuan, Li added.

 Shanghai's benchmark third-month copper futures contract
SCFc3 dipped to 56,180 yuan a tonne earlier in the day, its
lowest since February 12, before rebounding to 56,410 yuan by
0223 GMT.

 For a graphic showing the technical outlook, see:
 here

 The most-active contract for August deliver SCFQ0 fell
nearly 3 percent to 56,470 yuan a tonne.

 Three-month copper on the London Metal Exchange CMCU3
edged up $5 to $7,035, after having hit a more than two-month
low of $6,998 in the previous session.

 "The irrational rally is over, and now it's time to return
to reality," said a copper trader based in the southern
province of Zhejiang, "The correction in prices may last a
month or two."

 He added that although the general trend is pointing
downward, it would take more to hammer LME copper below the key
$7,000 level.

 LME copper MCU3=LX prices show a bearish technical signal
and are expected to fall further to $6,923 per tonne as a
continuation of the sharp drop yesterday, according to Wang
Tao, a Reuters market analyst. [TECH/C]

 For a graphic showing the technical outlook, see:
 here

 LME copper inventories have been on a steady decline since
the beginning of March, down 2,325 tonnes on Tuesday to 496,975
tonnes, the lowest since the end of 2009. [MCU-STOCKS]

 But copper stocks monitored by the Shanghai Futures
Exchange climbed to 189,441 tonnes, their highest since late
August 2002, despite that spring is the the traditional season
for high copper consumption.

 "Even though we are in the peak consumption season,
consumers haven't been able to digest the overly abundant
supply. We're seeing high exchange stocks, a lot of imports and
high domestic output," said Li of Great Wall Futures.

 "When summer arrives, we may see more pressure from supply
on prices."

 LME nickel CMNI3 fell to a near one-month low of $24,350
a tonne, before recovering to $24,500 a tonne.

 Shanghai zinc SZNc3 sank to a near two-month low of
17,360 yuan before recovering to 17,465 yuan. LME zinc CMZN3
was up $25 to $2,173.

 Glencore [GLEN.UL] has resumed operations at Iscaycruz, its
largest lead and zinc mine in Peru, which had been shut for
more than a year because of low prices.[ID:nN04100205]
  Base metals prices at 0223 GMT
 Metal         Last       Change   Pct Move  End 2009 YTD pct
chg
 LME Cu        7035.00      5.00     +0.07    7375.00
-4.61
 SHFE Cu*     56410.00  -1670.00     -2.88   59900.00
-5.83
 LME Alum      2173.00      8.00     +0.37    2230.00
-2.56
 SHFE Alum*   15855.00   -230.00     -1.43   17160.00
-7.60
 COMEX Cu**     318.75      2.30     +0.73     332.75
-4.21
 LME Zinc      2173.00     25.00     +1.16    2560.00
-15.12
 SHFE Zinc    17465.00   -595.00     -3.29   21195.00
-17.60
 LME Nickel   24500.00   -150.00     -0.61   18525.00
32.25
 LME Lead      2082.00     22.00     +1.07    2432.00
-14.39
 LME/Shanghai arb^          -221
 Dollar/yuan          6.8265 \ 6.8275
 ** 1st contract month for COMEX copper
  * 3rd contact month for SHFE aluminium, copper and zinc
  ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
 third month

* Copper tagged for delivery jumps in LME warehouses

* U.S. indicators showing signs of economic growth

* COMING UP: January U.S. factory orders, home sales (Recasts, updates prices, market activity; new byline, dateline, previously LONDON)

NEW YORK, March 3 – Copper rose on Wednesday, hitting a seven-week high as the dollar fell against the euro, making metals cheaper for non-U.S. investors amid signs that demand was improving cropped up in the U.S. and Asia.

Benchmark copper <CMCU3> on the London Metal Exchange ended at $7,580 a tonne, up from a close of $7,490 on Tuesday. The red metal, used in power and construction, touched a session high of $7,634, its highest since Jan. 11.

In New York, most active copper for May delivery <HGK0> finished with 2.35 cent gains at $3.4350 per lb on the New York Mercantile Exchange’s COMEX division.

The contract reached a high of $3.4720, near the seven-week high hit Monday at $3.4870 after Chile’s earthquake.

The euro strengthened after debt-laden Greece endorsed a 4.8 billion euro austerity package, to ensure it met key fiscal targets. [ID:nLDE6221CO] Dollar-denominated copper tends to rally when the euro gains.

Copper rose “because the situation in Greece has gotten better, so the euro’s rise was very strong. I think that had a lot to do with it,” said Donald Selkin, chief market strategist with National Securities Corp. In New York,

Robust data from the U.S. services sector did little to help the dollar, but added to other data showing improvement in U.S. economic growth. [USD/] [ID:nLDE622222]

In COMEX after-hours trade, the Federal Reserve released its Beige Book report showing increased U.S. economic growth.

The anecdotal Beige Book reported modestly stronger economic activity across most of the 12 Fed districts during February despite heavy snowstorms in many areas. [nWEQ003823]

CANCELED WARRANTS

Also supporting copper was a rise in canceled warrants in LME warehouses. Material tagged for delivery rose to 35,975 tonnes on Tuesday from 29,800 the previous day, and was up from 14,000 a week earlier.

Canceled warrants now constitute 6.5 percent of total LME copper stocks, which last fell 1,750 tonnes to 550,575 tonnes.

Demand from China helped copper surge 140 percent in 2009 in the absence of Western demand, but the world’s third-largest economy has been buying less copper as it tightens monetary policy to temper rapid growth.

But some analysts pointed to the canceled warrants and Wednesday’s drop in London Metal Exchange warehouse stocks as indication that China may be gearing up its purchases.

“You have slightly lower inventories and increased bookings. That could be showing better demand,” said Serkin.

CHILE IMPACT EASES

Traders said the impact from Chile’s weekend earthquake lessened, but still underpinned prices.

After two large aftershocks in Chile on Wednesday, top copper producer Codelco said its operations were not affected, [ID:737-800S] and it was exporting normally. [003600.KS]

Anglo American PLC <AAL.L> said copper production lost after Chile’s weekend earthquake amounted to less than 1,500 tonnes, with minor damage at its mining operations. [WB.N]

Chile’s copper mines, which produce a third of global supply, emerged almost unscathed from Saturday’s massive 8.8-magnitude quake which killed almost 800 people, toppled buildings, shattered key highways and downed power lines. [ID:nN02150357] [ID:nN03234941] [ID:nWLB9145] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

For more on Chile mines resuming output, see [ID:nN28135112]

For a map locating Chile’s major copper mines and the quake epicenter, see: http://link.reuters.com/qug92j <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Aluminium touched a five-week peak of $2,219 a tonne. Used in transport and packaging, it ended at $2,210 from $2,168.

Steel ingredient zinc <CMZN3> closed at $2,320 from $2,255, battery material lead <CMPB3> at $2,238.50 from $2,200, and tin <CMSN3> was untraded at the close, but bid at $17,350 from $17,075 a tonne on Tuesday.

Stainless ingredient nickel <CMNI3> hit $22,943, its highest since June 2008. It closed at $22,845 from $22,240 on Tuesday. It is up about 20 percent so far this year. (Additional reporting by Rebekah Curtis and Pratima Desai in London;

Copper +1350,

Nickel -378,

Lead -25,

Zinc +0,

Aluminium -5775,

Tin -190.

“It could be an attractive option,” RMI’s project chairman, Donovan Chimhandamba, said on Friday.

Chimhandamba also works for the strategic project fund at SA’s National Empowerment Fund, one of the partners in the planned titanium project along with the Industrial Development. Corporation Magnesium and Metals and TJTI are the other partners.

The plant would use Russian technology to produce titanium, zirconium, magnesium and other metals, Chimhandamba said. A local plant would allow SA to export processed metals rather than the raw metals currently shipped by companies including Rio Tinto and Exxaro Resources, he said.

The government is pushing companies to add value to commodities before they are exported to boost income from natural resources. Titanium prices are “exorbitantly high” at the moment as supplies are insufficient to meet demand, according to Chimhandamba.

The investors have committed R50m to pay for a prefeasibility study that may be completed in six to eight months. Preparing a funding model could take 18 to 36 months. The preferred site for the project is near Saldanha Bay.

Titanium is used in aerospace and defence because it is “as strong as steel and light as aluminium,” Chimhandamba said. Bloomberg

Copper +3475MT

Lead +550MT

Zinc -275MT

Nickel +330MT

Aluminium -4950MT

Tin -40MT.

Copper +775MT

Lead -350MT

Zinc -125MT

Nickel -162MT

Aluminium -5750MT

Tin -120MT.

Copper -50MT

Lead 0MT

Zinc -100MT

Nickel -288MT

Aluminium -8250MT

Tin -345MT.

Copper -50MT

Lead -500MT

Zinc +550MT

Nickel +90MT

Aluminium -7450MT

 Tin -300MT.

Copper +1725MT

Lead +350MT

Zinc +925MT

Nickel +162MT

Aluminium -7900MT

Tin +25MT.

Copper -675MT

Lead +250MT

Zinc -100MT

Nickel -102MT

Aluminium -6600MT

Tin +30MT

Copper +2475MT

Lead +200MT

Zinc +425MT

Nickel +1062MT

Aluminium -625MT

Tin -110MT.

Copper 5025MT

Lead +1725MT

Zinc +2275MT

Nickel +1116MT

Aluminium -3900MT

Tin +430MT.

Copper -800MT

Lead +225MT

Zinc +625MT

Nickel +516MT

Aluminium -4250MT

Tin -100MT.

Copper -450MT

Lead +300MT

Zinc +1100MT

Nickel +564MT

Aluminium -5675MT

Tin +-50MT.

Copper +8000MT

Lead +1000MT

Zinc +1350MT

Nickel +414MT

Aluminium +18525MT

Tin +-100MT

Copper -100MT

Lead +750MT

Zinc +975MT

Nickel -330MT

Aluminium -950MT

Tin +25MT

Copper +4600MT

Lead +0MT

Zinc -50MT

Nickel -78MT

Aluminium -5250MT

Tin +15MT

Copper +1975MT

Lead +50MT

Zinc -2050MT

Nickel -66MT

Aluminium -3675MT

Tin +15MT.

Copper +4575MT

Lead +725MT

Zinc +575MT

Nickel +810MT

Aluminium -5500MT

Tin -60MT

Copper +3150MT

Lead +225MT

Zinc +650MT

Nickel +168MT

Aluminium -2000MT

Tin +50MT.

Copper +75MT

Lead +1300MT

Zinc +500MT

Nickel +426MT

Aluminium -4450MT

Tin +65MT.

Copper +75MT

Lead +275MT

Zinc +1075MT

Nickel +414MT

Aluminium -4475MT

Tin +30MT.

Copper +6375MT

Lead +425MT

Zinc +1775MT

Nickel +4074MT

Aluminium +475MT

Tin -80MT.

 Copper +10025MT

Lead +850MT

Zinc +1800MT

Nickel +1038MT

Aluminium -1800MT

Tin +50MT.

Copper +1125MT

Lead +950MT

Zinc +17750MT

Nickel +498MT

Aluminium -3575MT

Tin -45MT.

Lead +0MT

Zinc -150MT

Nickel +168MT

Aluminium +21400MT

Tin -20MT.

December copper was 4 cents lower to $2.96 per pound in New York, while three-month contracts on the LME dropped $40 to $6,530 per tonne on the session.

Inventories were up by 5,775 tonnes during the day to 379,825 tonnes.

Aluminium stockpiles, on the other hand, were down by 2,300 tonnes in LME warehouses, sending that metals prices $4 higher to $1,925 per tonne as some analysts forecast that aluminium inventories are already past their peak and on the way down.

Zinc and lead each saw prices drop by $10, to $2,219 per tonne and $2,350 per tonne respectively, while nickel added $140 to $17,760 per tonne in London.

Meanwhile, among precious metals, December gold added $2 to $1,089.30 per troy ounce and December silver was up a cent to $17.41 per troy ounce, but January platinum dropped $6.40 to $1,362.90 per troy ounce