METALS-Copper ends flat in tight, rangebound trade

(Repeats, justifies table)

* Dollar drops on record euro zone industrial production

* China may tighten monetary policy, hitting metals imports

* Coming up: US industrial output, housing data, Fed meets
(Recasts, updates prices, market activity to COMEX close; new byline,
dateline, previously LONDON)

By Carole Vaporean

NEW YORK, March 12 (Reuters) - Copper was mostly flat on Friday, trading in
tight ranges with dollar declines supporting prices but with gains limited by
worries China might tighten monetary policy and slow metals demand.

Benchmark copper CMCU3 on the London Metal Exchange was last quoted at
$7,440/7,445 a tonne, barely down from $7,464 at the close on Thursday. The
metal used in power and construction ended mid-range between $7,405 and $7,510
a tonne.

New York copper prices finished with small gains, also trading within a
slim, sideways trading band.

Most active copper for May delivery HGK0 finished just 0.3 cent higher at
$3.38 per lb on the New York Mercantile Exchange's COMEX division.

"Copper garnered a little strength from the weakness in the dollar and
Chilean earthquake situation, keeping many players unwilling to sell into this
market," said David Meger, director of metals trading at Vision Financial
Markets in Chicago.

Copper has traded mostly sideways at a higher plateau reached in early
March after Chilean earthquake news caused fears of slower copper mine supplies
in the world's biggest producing country. On Thursday, those fears were
reignited when strong aftershocks of 6.9 magnitude shook central Chile.

Dollar declines helped keep a bid under dollar-denominated copper prices as
a weak dollar cheapened base metals for non-U.S. investors, traders said.

The dollar dropped to a one-month low against the euro as investors pared
large bearish bets on European currencies following record January euro zone
industrial output. [USD/]

"Overall, the market seems to be well supported, but generally on dips. Not
a lot of driving the momentum higher, but certainly interest in copper on
dips," said Meger.

Also underpinning prices was a government report showing U.S. retail sales
rose unexpectedly in February despite a drop in vehicle purchases and inclement
weather that was thought would curtail shopping. The increase on sales
bolstered hopes of sustainable U.S. economic recovery. Story: [ID:nN11242539]
Table: [ID:nCAT005137].

But copper has struggled to make headway in recent sessions as investors
worried red-hot growth and rising inflation could encourage China to tighten
monetary policy, which could in turn hit copper imports.

Chinese consumption doubts and fears of tighter credit were reinforced by
consumer inflation data, that jumped to a 16-month high in February.
[ID:nLDE62B0PI]

"The economic prospects are a little bit shaky, some are concerned growth
in China as we saw it over the last month will not be sustainable," said Eugen
Weinberg, an analyst at Commerzbank. "Some expect further tightening in China
soon, possibly in a question of weeks."

But analysts say that even if China hikes rates, its monetary policy should
remain accommodative enough to support robust consumption.

ANTICIPATION

Supporting copper were steep declines in inventories.

Stocks of copper in LME warehouses have fallen nearly 20,000 tonnes since
March 1 to 532,575 tonnes.

LME stocks of copper, zinc, lead, tin, nickel and aluminium all fell on
Thursday.

Zinc CMZN3 was at $2,335 in official rings from $2,337 on Thursday and
battery material lead CMPB3 was at $2,265 a tonne from $2,251. Tin CMSN3 at
$17,550 from $17,350 and stainless steel ingredient nickel CMNI3 was at
$21,750 from $21,295. Aluminium CMAL3 traded at $2,260.50 a tonne from
$2,235.
Metal Prices at 1709 GMT
Metal Last Change Pct Move End 2009 Ytd Pct

move
COMEX Cu 336.40 -0.20 -0.06 332.75 1.10
LME Alum 2250.00 15.00 +0.67 2230.00 0.90
LME Cu 7435.00 -29.00 -0.39 7375.00 0.81
LME Lead 2254.00 3.00 +0.13 2432.00 -7.32
LME Nickel 21550.00 255.00 +1.20 18525.00 16.33
LME Tin 17545.00 195.00 +1.12 16950.00 3.51
LME Zinc 2335.00 -2.00 -0.09 2560.00 -8.79
SHFE Alu 16750.00 30.00 +0.18 17160.00 -2.39
SHFE Cu* 59480.00 250.00 +0.42 59900.00 -0.70
SHFE Zin 18880.00 185.00 +0.99 21195.00 -10.92 ** 1st
contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
(Additional reporting by Rebekah Curtis and Pratima Desai in London; Editing
by David Gregorio)