Aluminium stocks rise, nearing record highs
* Slew of data eyed throughout the week

Copper rallied on Monday as confidence seeped in that the global economy was healing, but expectations of a slow and arduous recovery put a lid on gains.

Copper for three-months delivery on the London Metal Exchange traded at $5,100 in offical rings from $5,035 on Friday. The metal hit a day's high of $5,125.

"I envisage it trading sideways during the summer, and then in the medium to longer term you've got to be bullish on copper," said Standard Bank analyst Leon Westgate.

"You've got Chinese demand at the end of the year as (China) meets its growth targets, with the rest of the world following suit as the global economy gets back on its feet."

A slew of mixed data has provoked erratic trading trends in recent weeks as investors have struggled to gauge the economic climate. By and large, however, sentiment is improving.

Euro zone economic sentiment improved more than expected in June, data showed on Monday, while Japanese industry output rose for the third month in a row.

But policymakers and analysts stress that a potential recovery would be complicated and protracted.

CHINESE SUPPORT SUBSIDING

Chinese buying has helped copper, used in power and construction, rally 64 percent in 2009. But this restocking is slowing, and markets are now entering the quieter summer period.

Beijing said it had stopped buying after prices surged and middlemen cashed in on an initiative meant to support the domestic industry, a senior government official was quoted as saying on Monday.

Sentiment may also soften as China's copper imports, which hit successive record highs in previous months due to high domestic prices, are halting at the border after a collapse in Shanghai's premium over world market prices.

Shanghai's bonded warehouses, where metal is stored before being declared for customs, may now hold over 50,000 tonnes of refined copper, traders estimated on Friday.

Nonetheless, analysts see demand from the world's top copper consumer reviving again towards the end of the year.

Among other industrial metals, aluminium, used in transport and packaging, was unchanged at $1,647. Inventories rose 5,075 tonnes, near a record high around 4.4 million tonnes.

Traders said there are about 4,000 outstanding calls on aluminium at $1,700 ahead of options expiry, which takes place on the first Wednesday of every month.

Zinc was quoted at $1,572/1,575 from $1,581, as stocks of the metal leapt 9,700 tonnes to 353,700 tonnes.

"What we're probably seeing is mine and smelter restarts in China due to higher prices, while consumers have more than likely backed away in the last month at those levels," said analyst David Thurtell at Citi.

Battery material lead was quoted at $1,720 from $1,715.

Tin was quoted at $14,715/14,720 from $14,795. Tin was in a backwardation of $36/86 -- a premium for cash material over the three-month contract -- pointing to possible market tightness.

Cancelled warrants on tin -- material tagged for delivery -- stood at 690 tonnes from 860 tonnes, and accounted for 4 percent of total stocks. Inventories fell 195 tonnes to 16,760 tonnes.

Nickel was at $15,895 a tonne from $15,800.

This week's data includes China's Purchasing Managers Index on Wednesday, U.S. consumer confidence on Tuesday and U.S. June jobs and manufacturing data on Thursday. Metal Prices at 1215 GMT Metal Last Change Percent Move End 2008 Ytd Percent

move COMEX Cu 230.50 1.15 +0.50 139.50 65.23 LME Alum 1640.00 -7.00 -0.43 1535.00 6.84 LME Cu 5090.00 55.00 +1.09 3060.00 66.34 LME Lead 1715.00 0.00 +0.00 999.00 71.67 LME Nickel 15820.00 20.00 +0.13 11700.00 35.21 LME Tin 14715.00 -35.00 -0.24 10700.00 37.52 LME Zinc 1570.00 -11.00 -0.70 1208.00 29.97 SHFE Alu 13420.00 -105.00 -0.78 11540.00 16.29 SHFE Cu* 40280.00 -110.00 -0.27 23840.00 68.96 SHFE Zin 13440.00 -105.00 -0.78 10120.00 32.81 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07