METALS-London copper rebounds from 6-month low

* Copper off Friday's six-month low of $7,219.50
* Euro's big four agree on 130 bln euros growth package
* Some pickup in Chinese copper restocking

(Updates prices; adds quotes, details)
By Carrie Ho
SHANGHAI, June 25 (Reuters) - Copper prices rose on Monday
after European leaders calmed the markets with promises of
reform to combat the euro zone debt crisis, and after Germany,
France, Spain and Italy agreed on a 130 billion euro ($156
billion) package to revive growth.
Limited restocking of copper by Chinese investors in order
to exploit favourable arbitrage between London and Shanghai also
supported prices, but London copper's fall to a six-month low on
Friday showed markets were still worried that the problems faced
by Europe, the U.S. and China may crimp demand for metals.

Three-month copper on the London Metal Exchange rose
0.5 percent to $7,344 a tonne by 0722 GMT on Monday. It had
dived 1.7 percent to six-month lows of 7,219.50 on Friday before
paring losses to end the session down 0.4 percent.
"Fears over the global economy, which has directed most of
the selling in metals over the past few weeks, have eased today
since there isn't any fresh bad news from the euro zone, China,
or the United States," said CIFCO Futures analyst Zhou Jie.
"Metals have been oversold over the past few weeks and in
the absence of bad news, people are buying today on that basis,"
said a Shanghai-based trader with an international firm.
Euro zone worries eased after the leaders of Germany,
France, Italy and Spain agreed on the package, though German
Chancellor Angela Merkel still resisted pressure for common euro
zone bonds or more flexible use of Europe's rescue funds.

The most-active October copper contract on the Shanghai
Futures Exchange rose as much as 0.7 percent to a
session high of 54,410 yuan a tonne, before closing down 0.1
percent at 54,030 yuan, partly weighed down by Chinese equities.
It was the first trading day after a long weekend.
"Today's rally in Shanghai copper lacked momentum as many
fresh longs still decided to play it safe, closing out their
positions ahead of the EU summit and in view of how shaky global
economics are. But unless we get more bad news about the global
economy, prices look well supported near current levels at
$7,300 in London and 54,000 yuan in Shanghai," said a copper
buyer based in Shanghai.
The trader with the international firm said a slight rise in
physical copper demand was expected to put a floor below copper
prices as consumers took advantage of lower prices and the
favourable LME-ShFE arbitrage to restock a bit.
LME copper was trading 326 yuan higher than Shanghai copper,
narrowing from a premium of more than 1,600 yuan on June 19.
"Business at downstream copper industries is still in the
doldrums, and there are still few signs of recovery at the
moment. But spot demand has indeed increased with more drawdowns
from bonded and exchange warehouses due to the arbitrage," said
Zhou.

Base metals prices at 0722 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7344.00 34.00 +0.47 -3.37
SHFE CU FUT OCT2 54030 -30 -0.06 -2.88
LME Alum 1873.00 12.00 +0.64 -7.28
SHFE AL FUT OCT2 15515 -25 -0.16 -2.05
HG COPPER JUL2 330.65 0.05 +0.02 -3.77
LME Zinc 1818.00 18.00 +1.00 -1.46
SHFE ZN FUT OCT2 14565 -75 -0.51 -1.55
LME Nickel 16503.00 -72.00 -0.43 -11.80
LME Lead 1824.25 8.25 +0.45 -10.36
SHFE PB FUT 14760 -90 -0.61 -3.47
LME Tin 18705.00 30.00 +0.16 -2.58
LME/Shanghai arb 326

Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month

(Editing by Clarence Fernandez)