Reuters METALS-Copper up with euro, vulnerable on demand concerns

NEW YORK/LONDON, April 30 (Reuters) - A positive copper settlement on Friday was not enough to push prices into the plus column for the month, as uncertainties surrounding a bailout for debt-laden Greece and monetary tightening measures in China fanned concerns about near-term demand prospects.

While prices ended the higher, for the month, the metal used in power and construction lost about five percent of its value, the worst monthly performance since January.

Copper for July delivery HGN0 on the New York Mercantile Exchange's COMEX division ended up 0.30 cent at $3.3535 per lb, after trading in a range from $3.3935 to $3.3355, holding above Thursday's 1-1/2-month low at $3.3340 per lb.

On the London Metal Exchange, benchmark copper CMCU3 ended at $7,430 a tonne, up from $7,355 a tonne at Thursday's close, when it hit its lowest since late March at $7,341.50.

CHINA ABSENCE

The United States is the world's second-largest copper consumer after China, which is expected to account for more than 30 percent of global demand, estimated at around 19 million tonnes this year.

But concerns that China will extend monetary tightening measures, especially in the booming property market, helped scupper copper's attempt to maintain a mid-month rally above $8,000 a tonne.

"Events in China and Europe over the last fortnight have reduced the chances that China will raise interest rates in May, as we had expected. A first hike may now wait until the fourth quarter," said Capital Economics in a note.

On the plus-side, stocks of copper in LME warehouses, seen by some as a proxy for demand, fell by 3,250 tonnes to 499,300 tonnes, their lowest since the end of last year.

LME copper Stocks are down 55,775 since the middle of February, but most of that drawdown came before April, suggesting the pace is decelerating. <0#LME-STOCKS>

Aluminum stocks fell by 6,250 tonnes to 4.54 million tonnes. Prices of the metal used in transport and packaging have been supported by financing deals, that have tied up a large proportion of material in LME warehouses.

Lack of immediately available material has also helped push premiums for physical material in Europe to their highest in nearly three years. [ID:nLDE63Q24U]

Aluminum CMAL3 ended up $55 at $2,255 a tonne, zinc CMZN3 at $2,282 from $2,269, and lead CMPB3 was flat at $2,230. Tin MSN3 ended unchanged at $18,200 and nickel CMCU3 ended up $900 at $26,300. more...