METALS-China exports, Bernanke give copper firm boost

* Bernanke, China reinforce economic optimism

* Aluminum stocks fall more than 6,000 tonnes

* Coming up: Chinese May import data on Thursday

(Recasts, updates with New York closing copper price, adds New
York dateline/byline and analyst comment)

By Chris Kelly and Rebekah Curtis

NEW YORK/LONDON, June 9 (BestGrowthStock) – Copper prices rallied on
Wednesday, as comments by Federal Reserve Chairman Ben Bernanke and
reports of stronger Chinese exports spurred optimism for the global
recovery.

Copper for July delivery (HGN0: ) on the New York Mercantile
Exchange’s COMEX division rallied 7.05 cents, or 2.5 percent, to
settle at $2.85 per lb, near the upper end of its $2.7555 to $2.8790
session range.

On the London Metal Exchange, benchmark copper (CMCU3: ) ended up
$175 at $6,340 a tonne in official rings.

Both markets are up about 5 percent from eight-month lows hit on
Monday, at $2.72 and $6,037.50, respectively.

Analysts said the catalyst behind the advance on Wednesday was a
Reuters report that Chinese exports in May grew about 50 percent from
a year earlier. [ID:nTOE65805R]

The news went some way to reassuring investors concerned about
the damage to the global economy from Europe’s debt crisis.

“We’ve rebounded because of the rumors of quite good trade data
out of China,” said Daniel Smith, an analyst at Standard Chartered.
“Tomorrow, we’ve got the actual official announcement of that data so
it’s going to be the key thing to watch.”
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on the reaction of Shanghai equities and copper on the China
export news, double-click:
http://graphics.thomsonreuters.com/gfx/MBU_20100906145440.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Traders said some stability in the euro’s exchange rate against
the dollar had helped boost sentiment. [USD/]

Stoking copper’s losses in recent days was the dollar’s rise to
four-year highs against the euro, which made commodities more
expensive for holders of other currencies.

BERNANKE

Bernanke, in testimony to the U.S. House of Representatives
Budget Committee, said the economic recovery appeared to be on solid
footing and that while a double-dip recession “can never be entirely
ruled out,” he expects the economy to continue growing.
[ID:nWAL9HE68B]

“Copper is coming up on the back-end of Bernanke’s statements,”
said Jason Schenker, President of Prestige Economics, LLC.

“That has been a big driver and put a lot of markets in the green
today,” he said.

The three major U.S. stock indexes all rose more than 1 percent,
with the Dow Jones industrial average (.DJI: ) trading back up above
the psychologically important 10,000 level, and European shares
snapped a three-day losing streak to close up 1.85 percent.
[MKTS/GLOB]

Latest data showed LME stocks of copper fell 1,675 tonnes to
468,175 tonne, a fall of 15 percent since the middle of February and
the lowest level since December last year.

Aluminum stocks fell 6,325 tonnes to 4.51 million tonnes, from a
record above 4.64 million tonnes in January.

Aluminum (CMAL3: ) ended up $7 at $1,927 a tonne.

Zinc (CMZN3: ) rose $23 to close at $1,757, lead (CMPB3: ) ended up
$80 at $1,680, and tin (CMSN3: ) was untraded in rings but was last
quoted at $16,300/16,350 from $15,930. Nickel (CMNI3: ) climbed $800 to
finish at $19,270.
Metal Prices at 1836 GMT
Metal Last Change Pct Move End 2009 Ytd Pct

move
COMEX Cu 284.15 6.20 +2.23 334.65 -15.09
LME Alum 1925.00 5.00 +0.26 2230.00 -13.68
LME Cu 6320.00 155.00 +2.51 7375.00 -14.31
LME Lead 1660.00 50.00 +3.11 2432.00 -31.74
LME Nickel 19035.00 565.00 +3.06 18525.00 2.75
LME Tin 16275.00 345.00 +2.17 16950.00 -3.98
LME Zinc 1750.00 16.00 +0.92 2560.00 -31.64
SHFE Alu 14540.00 365.00 +2.57 17160.00 -15.27
SHFE Cu* 50420.00 990.00 +2.00 59900.00 -15.83
SHFE Zin 14160.00 480.00 +3.51 21195.00 -33.19
** Benchmark month for COMEX copper * 3rd contract month for SHFE AL,
CU and ZN
SHFE ZN began trading on 26/3/07

Stock Market Basics

(Additional reporting by Pratima Desai in London; editing by Keiron
Henderson and Marguerita Choy)

METALS-China exports, Bernanke give copper firm boost