METALS-Copper ends down as economic recovery doubts weigh

* Copper hit by global economic recovery doubts

 * China copper imports fall to 27-month low in Feb

 * Three-day top eyed in COMEX copper

 * Coming up: U.S. FHFA home price report Tuesday
 

 (Recasts, changes to New York dateline/byline, adds closing copper price, adds
graphic and analyst comments)

 By Chris Kelly and Rebekah Curtis

 NEW YORK/LONDON, March 21 (Reuters) - Copper fell more than one-percent on
Monday, failing to join in a broad-based equities rally as concerns about the
sustainability of the global economic recovery began to bite.

 A sharp reduction in China's imports of the metal last month and an
unexpected plunge in U.S. existing home sales added to the bearish tone,
reflecting a worrisome short-term demand outlook from the red metal's
two-biggest customers. [ID:nN18277568]

 "The reason why copper is not participating to the upside right now is
there are too many unanswered questions," said Adam Sarhan, chief executive of
Sarhan Capital.

 He cited the rise in crude oil prices and geopolitical tensions in the
Middle East, monetary tightening measures in top-consumer China, and the
uncertain outcome from Japan's nuclear crisis as being the most troublesome
issues facing the global recovery.

 "Investors simply do not know if these events are going to derail the
global economic recovery," Sarhan said.

 London Metal Exchange (LME) three-month copper CMCU3 shed $105 to close
at $9,405 a tonne.

 COMEX May copper HGK1 closed down 5.30 cents, that is 1.2 percent, at
$4.2860 per lb, near the bottom of its $4.2665 to $4.3685 range.

 Prices are down about 8 percent from last month's record highs at $10,190
per tonne and $4.6575 per lb.

 "It's technical in nature. You have a three-day top that has held," said
Scott Meyers, senior trading analyst with Pioneer Futures in New York, citing
$4.36-$4.37 as chart resistance.

 (Graphic: link.reuters.com/zuk68r )

 "From my standpoint, you'd want to see the 50-day moving average be
repaired as the first sign of the chance to go higher," Sarhan said.

 Overnight, data showed China's February imports of refined copper hit a
27-month low due to high stockpiles of the metal and holidays in the year's
shortest month. [ID:nTOE72K028]

 Despite slack Chinese consumption, supply worries and buoyant copper demand
projections were expected to boost prices longer term, Lars Steffensen,
managing partner at Ebullio told the Reuters Global Mining and Steel summit on
Monday. [ID:nLDE72K114]

 "I think we're going to have another stab at $10,000 if we break it. I
think we could see $11,000, $11,500 this year," he said. "I think there is a
floor around $9,000 in the market."

 Investors also remained focused on Japan where the government, which has
been juggling relief work with a race to avert catastrophe at a crippled
nuclear plant, has yet to estimate the damage or say how much it may spend on
reconstruction.

 Economists are certain the cost will exceed that of a 1995 quake in Kobe,
estimated at $100 billion, and base metals will be crucial to rebuilding
efforts. [ID:nL3E7EG1SG]

 In other metals, aluminium CMAL3 rose to a session high of $2,604 a tonne
before trimming gains to close up $10 at $2,570.

 Pressuring prices, International Aluminium Institute data showed China
bumped up its production of primary aluminium to a record high daily average of
about 116,200 tonnes in February, from a revised 110,300 tonnes in January.
[ID:nLDE72G1KO]

 INVENTORIES

 The bearish trend in LME copper warehouse stocks -- up more than 23 percent
since last December -- continued Monday, with an 850-tonne build to 430,500
tonnes. Most of the deliveries were seen flowing into Singapore and Gwangyang
warehouses, underlining physical market weakness in the Asian region.
<0#MCUSTX-LOC-GRD>

 Apparent demand for refined copper in China fell 12.5 percent in February
as imports slowed and stockpiles held at the Shanghai Futures exchange grew,
Reuters calculations based on the official Chinese data showed on Monday.
[ID:nBJI002621]

 "There is a bit of a bullish and bearish struggle going on," Christin
Tuxen, an analyst at Danske Bank, said.

 "Chinese import data coming out overnight showed copper imports declined
quite significantly last month, and that is something that is holding base
metals back, although you have a bullish factor on the other side with
reconstruction in Japan."
 Metal Prices at 1903 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       428.55       -5.35     -1.23     444.70     -3.63
 LME Alum      2570.00       10.00     +0.39    2470.00      4.05
 LME Cu        9395.00     -115.00     -1.21    9600.00     -2.14
 LME Lead      2644.00       -7.00     -0.26    2550.00      3.69
 LME Nickel   26725.00      -25.00     -0.09   24750.00      7.98
 LME Tin      29650.00      250.00     +0.85   26900.00     10.22
 LME Zinc      2280.00      -45.00     -1.94    2454.00     -7.09
 SHFE Alu     16695.00       55.00     +0.33   16840.00     -0.86
 SHFE Cu*     71480.00     -340.00     -0.47   71850.00     -0.51
 SHFE Zin     18005.00     -305.00     -1.67   19475.00     -7.55
** 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/2011/03/21/markets-metals-idUSLDE72K0UF20110321)