UPDATE 1-INTERVIEW-Aurubis CEO says trading conditions improving

* Says demand for some copper products rising

* TC/RCs and scrap smelting fees seen firming

* Operating profit expected in full financial year 2008/09

* Says LME copper price likely to remain about $5,000 a tonne

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By Michael Hogan and Jan C. Schwartz

HAMBURG, July 10 (Reuters) - Aurubis (NAFG.DE), Europe's largest copper producer, sees evidence of a recovery in its business environment, CEO Bernd Drouven said on Friday.

"Trading conditions are more positive than at the beginning of the year, the lower energy prices are also contributing," Drouven told Reuters. "We are relatively optimistic."

Aurubis, formerly Norddeutsche Affinerie, has seen a recovery in some demand since April in its key copper product sector, especially for continuous cast rod used for wire and cable production.

Some improved demand was seen in the automobile industry.

In other product sectors no worsening of demand had been experienced in the last three months, he said.

Output of copper cathodes - new metal - was currently at full capacity.

Fees earned for smelting copper scrap had risen by 30 to 50 percent in the past few weeks as London Metal Exchange and Shanghai copper prices were now at similar levels, he said.

In past months higher Shanghai copper prices had enabled Chinese traders to make heavy purchases of scrap copper in Europe at high prices, cutting European scrap supplies.

But this Chinese purchasing had now fallen and copper scrap supplies available to Aurubis were again good, he said.