Copper ends up over 2 pct on bullish demand views

* Base metals boosted by Japanese reconstruction prospects

* Bullish industry outlooks give further boost to copper

* Lead nears highest level in nearly 3 years

* Coming up: Japan imports, exports for Feb at 2350 GMT

(Recasts, updates with U.S. copper closing, adds analyst

comments, NEW YORK dateline/byline)

By Chris Kelly and Silvia Antonioli

NEW YORK/LONDON, March 23 (Reuters) - Copper prices climbed

more than 2 percent on Wednesday to their highest level in two weeks, shrugging off dismal U.S. housing data and rallying in tandem with broader industrial commodity strength.

The prospect of reconstruction efforts in Japan following the country's largest-ever earthquake and subsequent tsunami and nuclear crisis, against a backdrop of tightening supplies, continued to keep some base metals buoyant, even as the economic impact from the disaster remained uncertain.

London Metal Exchange lead CMPB3 is up more than 15 percent since the March 11 earthquake, and is approaching a near three-year peak.

"Today's action was not really based on any dramatic news, other than if you make the case that the Japanese tragedy will lead to more demand," said Bill O'Neill, partner in LOGIC Advisors in Upper Saddle River, New Jersey.

Ivanhoe Mines Ltd's (IVN.TO) chief executive, Robert Friedland, said Japan's demand for reconstruction materials was "insanely bullish" for copper. [ID:nL3E7EN05S]

LME benchmark copper CMCU3 closed up $237 at $9,727 a tonne, near an earlier-session peak at $9,740, its loftiest level since March 7. In New York, May copper HGK1 jumped 11.55 cents, or 2.7 percent, to settle at $4.4285 per lb.

Ralph Preston, futures analyst with HeritageWestFutures.com in San Diego, California, said the contract's breach of the 50-day moving average at $4.40 per lb was an indication that the market could have further technical momentum in the days ahead.

"A lot of technical traders will see a hold above the 50-day average as an indication that this market wants to move higher," he said, pegging next resistance at $4.50.

Even an unexpected fall in U.S. new home sales to a record low in February failed to break the back of copper, which is used extensively in the industry for plumbing and electrical wiring. [ID:nN23141447]

Richard Adkerson, president and chief executive of Freeport-McMoRan Copper & Gold (FCX.N), said that while the U.S. residential and commercial construction businesses remained very weak, an improving U.S. economy was helping drive copper prices to historic highs.

Speaking at the Reuters Global Mining and Steel Summit in New York, Adkerson said, "Export business (and) consumer spending is improving, automobiles (are) strong, so this recovery ... is translating into improved demand for copper."

(For other news from the Reuters Global Mining and Steel Summit, click link.reuters.com/kuq68r)

Rio Tinto Ltd (RIO.AX) (RIO.L) added to the bullish industry outlook, saying it expected global copper consumption over the next 20 to 30 years to exceed the total historical consumption to date. [ID:nL3E7EN01M]

Looking at inventory data, LME copper inventories fell by 200 tonnes to 434,150 tonnes. Despite the withdrawal, stocks have risen about 25 percent from mid-December. MCU-STOCKS

LEAD EYES 3-YEAR HIGH

Lead has rallied strongly since Japan's earthquake, adding to an already brightening fundamental outlook as demand from the global automotive sector heats up.

The metal, used in batteries, is widely expected to benefit when Japan starts buying materials it needs to rebuild, and as hospitals and businesses turn to battery-powered electricity because of badly damaged nuclear plants. [ID:nLDE72E1YU]

"There was a little bit of buying of lead based on the Japanese scenario," said Nic Brown, head of commodities research at Natixis. "But, for me, the story in lead is one of a market where demand is increasing rapidly."

Growing demand not just for new, but also for replacement car batteries in developing nations was a driving force, Brown said. But in the near term, prices may also be gaining steam ahead of a new contract launch in China on Thursday.

[ID:nL3E7EN0P7]

Lead CMPB3 closed up $46 at $2,716 a tonne, coming close to last week's $2,739.75 high -- its highest level since April 2008.

Metal Prices at 3:08 p.m. EDT (1908 GMT) COMEX copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T

 Metal           Last    Change   Pct Move  End 2010   YTD Pct

                                                     move
 COMEX Cu      443.90     12.60   +2.92       444.70    -0.18
 LME Alum     2631.00     31.00   +1.19      2470.00     6.52
 LME Cu       9726.00    236.00   +2.49      9600.00     1.31
 LME Lead     2715.00     45.00   +1.69      2550.00     6.47
 LME Nickel  26825.00    475.00   +1.80     24750.00     8.38
 LME Tin     31300.00   1150.00   +3.81     26900.00    16.36
 LME Zinc     2423.00     91.50   +3.92      2454.00    -1.26
 SHFE Alu    16830.00     70.00   +0.42     16840.00    -0.06
 SHFE Cu*    71980.00    700.00   +0.98     71850.00     0.18
 SHFE Zin    18600.00    420.00   +2.31     19475.00    -4.49
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07

(Source: http://www.reuters.com/article/2011/03/23/markets-metals-idUSLDE72M18120110323)