US copper up in early rebound from 19-month lows

NEW YORK Oct 7 (Reuters) - U.S. copper futures climbed from 19-month lows Tuesday morning, buoyed by surrounding market strength and emergency U.S. Federal Reserve action aimed at unfreezing credit markets.

NOTE: For detailed report, click on [MET/L]

* Copper for December delivery HGZ8 was trading up 5.20 cents at $2.5450 a lb by 10:37 a.m. EDT (1437 GMT) on the New York Mercantile Exchange's COMEX division.

* The early range was from $2.4535 to $2.5940.

* After the market close on Monday, the benchmark December contract plunged more than 12 percent to $2.3525, its lowest level since mid-February 2007.

* Spot October HGV8 firmed 6.85 cents to $2.5725.

* COMEX estimated futures volume at 8,426 lots by 10 a.m.

* Copper holds positive territory early Tuesday in tandem with recoveries in the broader commodity complex. The Reuters-Jefferies CRB .CRB, a global commodities benchmark, was up nearly 1 percent at one point at 314.20.

* Copper rise supported by the U.S. Federal Reserve creation of a special purpose facility to begin buying commercial paper, a move aimed at calming chaotic financial markets. [ID:nL7273529]

* In currencies, the euro firmed against the dollar after the Fed action was seen boosting risk appetite.

* In early trade in New York, the euro was up 1.5 percent at $1.3690, pulling away from a 14-month low at $1.3441 on Tuesday, according to Reuters data.

* A weaker U.S. currency makes dollar-priced metals more attractive to non-U.S. investors.

* Copper's upside limited due to lingering concerns about falling demand in a global recessionary environment.

* "The bursting of the credit bubble has pricked that particular balloon and now flagging confidence in the U.S. government's $700 billion TARP rescue package and deepening signs that the lingering liquidity/credit crunch is biting globally is sending the markets reeling in a one-way death spiral, fuelling super-charged risk-reduction/de-leveraging." - RBC Capital Markets.

* In industry news, Southern Copper, one of the world's largest copper producers, said planned projects in Peru and Mexico could be slowed by the global financial crisis, but it would consider dipping into its dividends to carry them out if credit markets tighten further. [ID:nN05332086]

* London Metal Exchange copper warehouse stocks surged 9,600 tonnes to 208,350 tonnes on Tuesday -- their highest level since February 2007, with between 80-90 percent of them held by one entity.

* COMEX copper stocks were flat at 9,921 short tons as of Monday.

* London copper for delivery in three months MCU3 was last at $5,650 a tonne, up $90 from Monday, when it tumbled 7.5 percent. (Reporting by Chris Kelly)