UPDATE 6-Copper up as dollar eases, lead jumps 11 pct

* Copper up 1 percent as dollar retreats from 2008 highs

* Lead hits three-week high at $2,060/t as inventories fall

* Zinc and nickel firms in technical rebound
(Updates with New York closing copper prices, adds analyst comment)

By Julie Crust and Anna Stablum

LONDON, Aug 27 (Reuters) - Copper rose on Wednesday as the dollar softened
and lead rose more than 10 percent on a technical rebound.

"The whole commodity complex is higher and the dollar is a bit weaker -- so
it is just a reaction of the oversold situation in lead," said analyst Eugen
Weinberg at Commerzbank.

London Metal Exchange lead MPB rose 11.1 percent to a high of $2,060 --
the highest level since Aug. 8 -- before closing at $2,050. On Tuesday lead,
used in batteries, was at $1,855.

Prices have fallen by 15 percent this month as the European summer is a
traditionally soft period for metals demand.

Copper for delivery in three months MCU3 rose 0.9 percent to $7,650/7,655
per tonne from $7,580 on Tuesday.

In New York, copper for September delivery HGU8 ended up 3.30 cents at
$3.4715 a lb on the New York Mercantile Exchange's COMEX division, as a softer
U.S. currency raised the appeal of dollar-priced metals for other currency
holders.

The dollar slipped as investors bet the U.S. currency's recent jump to 2008
highs against a basket of currencies .DXY was too far and too fast.
[ID:nN27420624]

"Slightly oversold conditions combined with the outside market strength
seen giving the copper market a bit of a bounce today," said Sterling Smith,
vice president with FuturesOne in Chicago. "We did hold a rising level
technical support coming in underneath at around the $3.40 level. I don't think
we will have a problem holding there for the rest of the week."

Lead stocks in LME warehouses fell 3,050 tonnes to 83,375 -- the lowest
level since June 13.

Since July there has been strong demand for lead in Singapore with metal
going to China, which has become a net importer of refined lead for the first
time since 2004. [ID:nPEK336507]

"The imports from China are picking up," Weinberg said.

"There have been several announcements of production cuts for both lead and
zinc and demand is not as bad as we expected."

Zinc MZN3 gained 3.4 percent to a high of $1,850 before closing at
$1,849. LME stocks fell 1,300 tonnes to 161,225.

On Tuesday, the metal, mainly used to galvanise steel, closed at $1,790,
after falling more than 2 percent.

The metals were seen finding a floor with zinc prices falling by 24 percent
this year and lead is down 20 percent.

"The situation is positive for lead and zinc, both are energy-intensive
metals and production costs are high," Weinberg said.

Also, nickel MNI3 bounced after being oversold, down more than 20 percent
this year as demand from stainless steel producers, using nickel for
durability, have fallen behind expectations.

Nickel was last at $21,000, up 4.8 percent, versus $20,030 on Tuesday.

COPPER SEEN PICKING UP

Traders in Shanghai said they had seen new material coming into the
physical market, dragging down spot prices, and there was talk of "tens of
thousands" of tonnes of copper arriving.

"A replenishment would not necessarily be bearish as stocks in Shanghai are
critically low at the moment," Nick Moore, commodity strategist at Royal Bank
of Scotland, said.

Shanghai exchange warehouse stocks, at 21,796 tonnes last week, or about
two days of Chinese daily consumption, are tight, despite rising inventories in
LME warehouses.

LME copper stocks, used in construction and power cables, rose 950 tonnes
to 167,850, the highest level since Feb. 6.

Moore said copper stocks tend to increase in August, but following the end
of the Olympic Games the market would look forward to a seasonal bounce in the
fourth quarter.

Miner Antofagasta (ANTO.L) said it expected fundamentals for the copper
market to remain sound, with prices remaining strong well into 2009, despite a
softening of prices in the seasonally weaker third quarter. [ID:nLR579990]

Aluminium MAL3 closed at $2,765 a tonne from $2,768 as rising oil prices
CLc1 put pressure on the energy-intensive metal, even as inventories of the
metal declined.

Stocks fell 2,200 tonnes to 1.16 million tonnes, but are still close to
their highest levels since April 2004.

Tin MSN3 was under pressure from profit-taking after being the best LME
metals performer this year gaining 25 percent.

It closed at $20,550 from $20,700 on Tuesday.

Metal Prices at 1844 GMT
Metal Last Change Pct Move End 2007 Ytd Pct

move
LME Cu 7630.00 50.00 +0.66 6670.00 14.39
SHFE Cu* 59500.00 420.00 +0.71 56880.00 4.61
LME Alum 2765.00 -3.00 -0.11 2403.00 15.06
SHFE Alu* 18030.00 55.00 +0.31 18180.00 -0.83
COMEX Cu** 350.75 2.90 +0.83 303.05 15.74
LME Zinc 1835.00 45.00 +2.51 2370.00 -22.57
SHFE Zinc* 14335.00 220.00 +1.56 18950.00 -24.35
LME Nick 20725.00 695.00 +3.47 26350.00 -21.35
LME Lead 2045.00 190.00 +10.24 2550.00 -19.80
LME Tin 20450.00 -250.00 -1.21 16400.00 24.70
** 1st contract month for COMEX copper
* 3rd contact month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
(Reporting by Julie Crust, additional reporting by Chris Kelly in New York,
editing by Matthew Lewis)