Copper up 1 pct; supported by long-term demand outlook

* LME zinc hits three-month high

 * Chinese buying reluctant at high prices

 * Coming up: Germany producer prices Jan, 0700 GMT

 (Addes details, comments; updates prices)	

 By Rujun Shen	

 SINGAPORE, Feb 18 (Reuters) - London copper prices rose by
one percent on Friday, after dipping to their lowest since Jan
31 in the previous session, fuelled by growing worries over
inflation, but long-term demand prospects remain strong,
supporting market sentiment.	

 Amid rising inflation concerns worldwide, U.S. consumer
prices, excluding volatile food and energy costs, rose at the
quickest pace in 15 months in January, suggesting a long period
of slowing inflation had run its course. 	

 But the bearish data was quickly dismissed by investors in
the copper market.	

 "The macro news was bearish, but copper still has pretty
good fundamentals, on top of technical support," said a
Shanghai-based trader, "The key question is if the Chinese are
willing to buy."	

 China's rising consumer prices data released earlier this
week dented the shorter-term demand view and raised the spectre
of further monetary tightening, knocking London copper off its
all-time high of $10,190 hit on Feb 15.	

 "China's demand is still decent -- all the ongoing
construction projects won't be cancelled just because copper
prices are high," said the trader.	

 Shanghai's most-active copper contract for May delivery
 gained 0.7 percent to 75,190 yuan a tonne, on course
for a 0.5 percent weekly loss, snapping a three-week winning
streak.	

 Three-month copper on the London Metal Exchange rose
by one percent at $9,908.25, down 0.5 percent on the week.	

 "Sentiment and positions have been flickering," said a
second Shanghai-based trader. "People are torn between views
that such high prices are not supported by fundamentals and a
correction is needed, but the price outlook is still bright.	

 "Along the rally, there should be chances for followers to
take a break and catch their breath."	

 Traders and analysts said Chinese buyers have been reluctant
after prices breached the $10,000 mark.	

 Investors continued to watch the spreading unrest across the
Middle East and North Africa, after Bahrain launched a swift
military crackdown on anti-government protesters and clashes
were reported in Libya and Yemen. 	

 The Shanghai Futures Exchange is due to release its weekly
stockpile data later in the day.	

 LME zinc rose to a three-month high of $2,555,
before easing to $2,542.	

 Shanghai zinc rose nearly two percent to 20,130
yuan a tonne.	

 Traders said some investors had pulled out of copper to buy
zinc, which was the worst performer among industrial metals in
2010.	

 Aluminium and lead production in China is rising after
smelters in Henan and Guizhou received more power supplies this
month, allowing them to ramp up idle and new capacity, smelter
sources said on Thursday. 	

 The ratio of cancelled warrant to total stocks on LME lead
remained at seven percent, after cancelled warrant soared 16,000
tonnes on Wednesday. <0#MPBSTX-LOC>	

 LME tin rose by 0.8 percent at $31,900 a tonne,
recovering from a two-week low of $30,801 in the previous
session.	

 Indonesia's refined tin exports rose 8.3 percent in January
from the same month in 2010 as exporters rushed to take
advantage of record high global tin prices, the trade ministry
said on Thursday.  	

 	
 Base metals prices at 0257 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            9908.25    106.25     +1.08      3.21
  SHFE CU FUT MAY1    75190       510     +0.68      4.65
  LME Alum          2532.00     19.00     +0.76      2.51
  SHFE AL FUT MAY1    17170        20     +0.12      1.96
  HG COPPER MAR1     450.50      2.30     +0.47      1.48
  LME Zinc          2542.00     28.00     +1.11      3.59
  SHFE ZN FUT MAY1    20130       370     +1.87      3.36
  LME Nickel       28620.00    130.00     +0.46     15.64
  LME Lead          2610.00     25.00     +0.97      2.35
  LME Tin          31900.00    250.00     +0.79     18.59
  LME/Shanghai arb^          1085
  Dollar/yuan          6.5796 \ 6.5801

Shanghai and COMEX contracts show most active months

^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE  third month
(Source: http://af.reuters.com/article/metalsNews/idAFL3E7DI02F20110218)