METALS-Copper hits 1-week high on strong US housing data

* Copper extends strong gains on robust U.S. housing data * Aluminium hits lowest since end-July, then rallies * Fed Chair Bernanke signaled global recovery is at hand (Reledes, adds late LME and closing U.S. prices, U.S. comment. Changes byline, dateline. Rewrites throughout) By Carole Vaporean and Maytaal Angel NEW YORK/LONDON, Aug 21 (Reuters) - Copper hit a one-week high on Friday, rallying more than 5 percent as strong U.S. housing data boosted many investors' outlook for demand. Copper rallied in tandem with U.S. equities and crude oil. Both markets raced up to their 2009 peaks on positive comments about global growth from Federal Reserve Chairman Ben Bernanke and data showing existing home sales rose for the fourth month in a row, suggesting positive demand prospects. [.N] [O/R] Copper for three-months delivery MCU3 on the London Metal Exchange closed at $6,270 a tonne versus $6,049 on Thursday. In late after hours trade, it had moved to its highest since Aug. 14 at $6,335 a tonne, rallying with other markets. In New York, copper for September delivery HGU9 settled 13.90 cent, or 5.07 percent, higher at $2.8805 a lb on the New York Mercantile Exchange's COMEX division, near the one-week peak at $2.8835 hit earlier. That level was last seen on Aug. 14 when copper reached a 10-1/2-month top. An industry survey showed sales of previously owned U.S. homes in July rose by their fastest pace in nearly two years, boosting economic sentiment. [ID:nN21391628] "Existing home sales and the Bernanke speech came out simultaneously. Both Bernanke and home sales were 'all aboard' the recovery story," said Alan Ruskin, Global Head of Currency Strategy at RBS Global Banking and Markets in Connecticut. At an annual Federal Reserve conference in Jackson Hole, Wyoming, Bernanke gave his clearest signal yet that a recovery is at hand, though he cautioned that growth would be sluggish for awhile. [ID:nN2139655] Just the same, metals investors saw the twin messages of improving recovery prospects having potential to boost demand. "This is all very constructive because the market needs to see data not coming in line (with) or barely beating estimates," said Edward Meir, an analyst at MF Global. "People are pushing prices higher because of what they perceive to be a pick-up in demand -- the question is how strong that will be." Meir added that while the downturn had bottomed out and was in recovery mode, a price correction could not be ruled out. A weak U.S. currency, which makes metals priced in dollars less expensive for holders of other currencies, also supported prices, analysts said. [USD/] They added that market participants are still concerned about China tightening capital requirements and how this could impact metal demand. Chinese shares have lost about 15 percent in just two weeks due to worries Beijing is clamping down on easy money policies and aggressive bank lending. [MARKETS/AS] Copper prices have doubled this year as China ramps up imports to record levels and economic data begins to improve. SUPPLY THREATS RETURN Traders noted threats to supply were reappearing and with the demand outlook beginning to pick up could support prices later this year. Workers at Chile's Spence copper mine have demanded a 5.5 percent wage hike, marking the start of potentially tough collective contract negotiations. [ID:nN20538871] Among other industrial metals, aluminium MAL3 ended at $1,930 a tonne from $1,906. It firmed to $1,958 in after-hours business. Earlier, the metal used in transport and packaging hit $1,872, its lowest since late July. A Citigroup note said Chinese aluminium imports should fall in coming months as the Shanghai-London arbitrage has closed. "We believe China's aluminium production is ramping up again. In addition, China's stockpiles of aluminium are significant," Citigroup Global Markets said in a note. Zinc MZN3 closed at $1,834 from $1,804, battery material lead MPB3 was at $1,863 from $1,820, while tin MSN3 was last bid at $14,300 from $13,800. Nickel MNI3 closed at $19,300 from $18,875, then firmed to $19,500 in late trade. Jinchuan Group Ltd., China's largest nickel producer, lowered its nickel prices by nearly 5 percent for the first time in several months. [ID:nSHA373944] Metal Prices at 1609 GMT Metal Last Change Pct Move End 2008 Ytd Pct move COMEX Cu 283.60 9.80 +3.58 139.50 103.30 LME Alum 1925.00 19.00 +1.00 1535.00 25.41 LME Cu 6250.00 201.00 +3.32 3060.00 104.25 LME Lead 1860.00 40.00 +2.20 999.00 86.19 LME Nickel 19250.00 375.00 +1.99 11700.00 64.53 LME Tin 14300.00 -150.00 -1.04 10700.00 33.64 LME Zinc 1825.00 21.00 +1.16 1208.00 51.08 SHFE Alu 14810.00 -155.00 -1.04 11540.00 28.34 SHFE Cu* 46910.00 -710.00 -1.49 23840.00 96.77 SHFE Zin 14840.00 -110.00 -0.74 10120.00 46.64 ** 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 Michael Taylor in London; Editing by Christian Wiessner) © Thomson Reuters 2009 All rights reserved Share:Del.icio.usDiggMixxYahoo!FacebookLinkedIn Also On Reuters Business Travel: World's tallest and coldest hotelsHow a Rust Belt town weathered the stormBlog: South African fury at sex test for track star Ads by Marchex Looking for Higher Rates on CDs? 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