Copper

Metals - Copper rallies as traders focus on rising Chinese demandLONDON (AFX) - Copper prices rallied as traders focused on signs of improved demand from China and after the LME reported a sharp drop in stockpile levels.At 1.54 pm, LME copper for three-month delivery was up at 5,620 usd a tonne against 5,470 usd at the close Friday.Standard Chartered analyst Tariq Salaria said there is speculation in the market the Chinese will continue importing large amounts of copper this month."Shipment vessels are on their way and everyone knows they're destined for China - this is the trend going on for 4 months now," he said.Yesterday, data showed Chinese imports of unwrought copper and semi-finished copper products rose 44 pct in January over December."Indications are that Chinese destocking has come to an end and that restocking is on the way," said Salaria.Separately, copper is benefiting from a hefty decline in LME stocks.The LME said in a daily report earlier that copper stocks fell by 2,800 tonnes to total 213,250 tonnes.Although copper stocks held in LME warehouses have more than doubled since the start of last year, Salaria said overall global supply is still below historical averages.Aluminium prices also rallied as the metal continued to benefit from the general strike in Guinea, which has affected bauxite exports.Bauxite is a raw material used in the production of alumina, the raw material used to make aluminium.Nine people have been killed to date in the west African country since the strikes began, while President Lansana Conte has declared martial law.Aluminium was up at 2,770 usd a tonne against 2,707 usd at the close yesterday.Tin climbed higher but held below a new record high of 12,475 usd a tonne hit yesterday.Indonesian miner PT Koba Tin, which is being investigated on counts of illegal mining, has suspended shipments from the island of Bangka.Tin was up at 12,600 usd a tonne against 12,475 usd at the close yesterday.Lead extended yesterday's gains, still benefiting from Xstrata's declaration of force majeur on deliveries from its Mt Isa complex in Australia.Lead was up at 1,690 usd a tonne against 1,660 usd at the close yesterday.In other metals, zinc was up at 3,165 usd against 3,110 usd while nickel rose to 36,100 usd against 34,875 usd.