METALS-Copper jumps to multi-month highs on Fed stimulus

* LME copper hits 4-month high, ShFE copper at highest since
March
* LME copper on track for a more than 4 pct weekly gain
* LME tin, ShFE zinc up more than 4 pct
* Fed to pump $40 bln per month until jobs market lifts

By Carrie Ho
SHANGHAI, Sept 14 (Reuters) - Copper prices rallied on
Friday, with benchmark London and Chinese contracts at the
highest in up to five months, after the U.S. Federal Reserve
launched a new round of aggressive stimulus that could boost
demand for industrial metals.
Optimism coursed through financial markets, lifting Asian
shares and driving the euro to a four-month high against the
dollar, after the Fed said it would pump $40 billion into the
world's largest economy per month until it saw a sustained
upturn in the weak jobs market.
Three-month copper on the London Metal Exchange hit
a fresh four-month peak, rising 3.5 percent to its session high
of $8,355 a tonne, the highest since May 2, before giving up
some gains to trade at $8,290.50 by 0145 GMT.
London copper is on track for a weekly increase of more than
4 percent, which would bring its gains over two weeks to almost
9 percent -- its biggest two-week rise since November last year.
The January copper contract on the Shanghai Futures Exchange
shot up about 4 percent to a session high of 60,440 yuan
($9,500) per tonne, its loftiest since April.
Base metals rose across the board, with Shanghai zinc
jumping 4.4 percent to 15,980 yuan, also its highest
since March.
LME tin rallied more than 4 percent, revisiting a
four-month peak of $21,200 it had touched on Wednesday.
While traders predicted a spike in base metal prices, they
doubted if the rally could be sustained for long.

"It's hard to say how long this rally will last given the
uncertainties over how long the Fed will keep this stimulus
going and how effective it will be," said Orient Futures
derivatives director Andy Du.

SCEPTICAL
The slowdown in leading emerging market economies China,
India and Russia will persist over the coming quarters, while
the outlook for the euro zone remains weak, Paris-based economic
think-tank OECD said on Thursday.
The European Central Bank voiced similar concerns, saying
economic growth in the region was expected to remain weak and
that "heightened uncertainty" was weighing on confidence.

In industry news, Russia's RUSAL, the world's
largest producer of primary aluminium, could offer floating
premiums in term supply contracts it negotiates with consumers
for 2013, with both sides reluctant to set long-term deals as
spot market premiums reach record highs.
The company's CEO, Oleg Deripaska, said he saw LME aluminium
prices rising to $2,300 per tonne in the first half of 2013.

In China, aluminium profile manufacturers in Guangdong have
reported a rise in orders this month, after seeing their order
books decline over the past 3-4 months, which analysts and
industry sources are pointing to as a sign of recovering demand
in China.

Base metals prices at 0145 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8290.50 215.50 +2.67 9.09
SHFE CU FUT JAN3 59910 1790 +3.08 7.69
LME Alum 2125.25 23.25 +1.11 5.21
SHFE AL FUT DEC2 15880 170 +1.08 0.25
HG COPPER DEC2 378.35 7.35 +1.98 10.11
LME Zinc 2074.00 38.00 +1.87 12.41
SHFE ZN FUT DEC2 15760 455 +2.97 6.52
LME Nickel 17160.00 410.00 +2.45 -8.28
LME Lead 2206.00 48.50 +2.25 8.40
SHFE PB FUT 16260 460 +2.91 6.34
LME Tin 20950.00 600.00 +2.95 9.11
LME/Shanghai arb 1460

Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
*SHFE CU FUT JAN3 figures grabbed at 0324 GMT
($1 = 6.3296 Chinese yuan)

(Editing by Ed Davies and Himani Sarkar)
(carrie.ho@thomsonreuters.com; +86 21 6104 1775; Reuters
Messaging:; carrie.ho.reuters.com@reuters.net)