METALS-Copper rallies, IMF view boosts economic sentiment

* IMF comments, China data boost sentiment

* Aluminum stocks hold near record

* Tin September-December 2009 backwardation eases

(Recasts lead, updates with New York closing copper prices, adds
NEW YORK to dateline and analyst comments)

By Chris Kelly and Rebekah Curtis

NEW YORK/LONDON, July 9 (Reuters) - Copper prices rallied
sharply on Thursday, driven by a sharply weaker dollar and bullish
comments from the International Monetary Fund that the global
economy was slowly starting to emerge from the worst recession since
World War Two.

Copper for September delivery HGU9 on the New York Mercantile
Exchange's COMEX division surged 7.85 cents, or 3.6 percent, to
settle at $2.2375 a lb, near the upper end of its $2.1550 to $2.2435
session range.

On the London Metal Exchange (LME), benchmark copper MCU3
closed at $4,890 a tonne, up $170 from its close on Wednesday when
it hit a two-week low of $4,710 on worries about poor demand
prospects.

It hit a session high of $4,898.75.

In an update of its World Economic Outlook, the IMF said the
global economy was likely to contract 1.4 percent this year, but it
expects growth of 2.5 percent in 2010 compared with an April
forecast of 1.9 percent. [ID:nN08376464]

"Things seem to be stabilizing," said Andrey Kryuchenkov,
analyst at London's VTB Capital. "Copper is holding unbelievably
well."

Adding to better market sentiment, Germany said it may have
already emerged from recession [ID:nL9586626], while data showed the
number of U.S. workers filing new claims for jobless benefits fell
sharply last week. [ID:nN08382700]

"Nerves were frayed yesterday and what the IMF was saying has
helped soothe nerves," said Robin Bhar, analyst at Calyon.

Charles Nedoss, senior account manager and metals analyst with
Peak Trading Group in Chicago, cited a "technical failure" in the
U.S. dollar .DXY as being another driver of the red metal's
recovery, after it failed to maintain gains above the 20-day moving
average.

"The dollar failed in a big, big way today," he said. "A lot of
trend-following systems define the intermediate trend as where you
are in relationship to the 20-day moving average. You're above it,
you're in an uptrend ... below it, you're in a downtrend."

A weaker U.S. currency makes dollar-priced metals cheaper for
holders of other currencies. [USD/]

Further underpinnings came from China, where a think tank
forecast Chinese economic growth at around 8 percent this year.
[ID:nSP466423] [ID:nSP486673], while additional data showed China's
passenger car sales jump 47.7 percent in June from a year earlier.
[ID:nSHA165501]

Tin MSN3 bucked the trend however, falling as much as 6.7
percent, to a two-month low of $12,400 from $13,295. It closed at
$12,700. Traders cited a fall in the September-December
backwardation, a premium for cash material over futures contracts.

For more on market concerns about tightness in the tin market,
click on [ID:nL7149027] or [ID:nL6246168]

STOCKS UNDER WATCH

Copper stocks held in LME warehouses fell 3,375 tonnes, but
traders said on Wednesday up to 100,000 tonnes originally destined
for China -- where stockpiling by the state and consumers has helped
to push copper prices up about 60 percent this year -- may now be
headed for London. [nL8630162]

Stocks of aluminum MAL3 in LME warehouses fell 1,075 tonnes
but were just off a record high of 4.4 million tonnes.

The metal used in transport and packaging, which hit a one-month
low of $1,545 a tonne on Wednesday, closed at $1,574 a tonne from
$1,550.

"The aluminum market looks grim. Demand is weak ... the pace of
supply curtailments has been slow, and now there are restarts.
Excess inventories have built at an alarming rate," Citi said in a
note.

Battery material lead MPB3 was at $1,625 versus $1,610.
Traders noted the build up of canceled warrants -- material tagged
for delivery -- and of dominant positions controlling most of the
stock in LME warehouses. [LME/WC] [MPB/STX1]

Steel ingredient nickel MNI3 was at $14,900 a tonne against
$14,950. It hit a day's low of $14,500, its lowest since June 23.
Zinc MZN3 closed at $1,530 from $1,510.
Metal Prices at 1923 GMT
Metal Last Change Pct Move End 2008 Ytd Pct

move
COMEX Cu 220.95 6.15 +2.86 139.50 58.39
LME Alum 1585.00 35.00 +2.26 1535.00 3.26
LME Cu 4902.00 182.00 +3.86 3060.00 60.20
LME Lead 1635.00 25.00 +1.55 999.00 63.66
LME Nickel 14900.00 -50.00 -0.33 11700.00 27.35
LME Tin 12775.00 -520.00 -3.91 10700.00 19.39
LME Zinc 1530.00 20.00 +1.32 1208.00 26.66
SHFE Alu 13395.00 -40.00 -0.30 11540.00 16.07
SHFE Cu* 39420.00 430.00 +1.10 23840.00 65.35
SHFE Zin 13180.00 45.00 +0.34 10120.00 30.24
** 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 Kylie MacLellan in London; editing by
James Jukwey/Marguerita Choy)