Copper rose more than 4 percent on Monday on higher oil prices and the weaker dollar but analysts expect the rally to be short lived because the outlook for the metal remains bleak as demand dwindles. The metal, used in construction and power facilities, has lost almost 60 percent in value this year and is expected to remain weak in 2009 due to the global financial crisis. "There is still a lot of fear and that is going to weigh on any rally," a broker at Sucden said. "The rallies will probably be sold into in the new year." "We are still in the middle of the recession that would definitely hurt metal demand," an LME dealer in Shanghai said. Copper for three-month delivery on the London Metal Exchange rose 4.1 percent to a high of $2,940 a tonne from $2,825 at the close on Wednesday, the last trading session before the holidays. It traded at $2,880 a tonne in ring trading. Base metals can benefit from stronger oil prices as they often raise investors' interest in commodities as an asset class, while the weaker dollar makes the metals cheaper for holders of other currencies. Oil rose above $42 a barrel in reaction to the violence between Israel and Hamas on fears of supply disruptions. The dollar fell broadly, hobbled by a grim outlook for the U.S. economy and the Federal Reserve pouring liquidity into the banking system. CHINA STOCKPILES A move by China to stockpile tin and aluminium had little impact as market participants awaited further clarity on the deals, traders said. Top Chinese tin producer Yunnan Tin has proposed selling 30,000 tonnes of tin ingots to Yunnan province for its planned base metal reserves, a company executive said. Tin was trading at $9,750 a tonne from $9,850. The move follows China's State Reserves Bureau (SRB) agreement to buy about 300,000 tonnes of aluminium at around 12,300 yuan ($1,800) per tonne in January to support producers, trading and industry sources said last week. "It is positive if it's going to happen," the Sucden broker said. Aluminium fell to $1,505.5 a tonne from $1,540, zinc was down at $1,140 from $1,144. Lead was last bid at $870, compared with $875.5 at the close on Wednesday, while nickel was last bid at $9,900 from $9,600. Metal Prices at 1311 GMT Metal Last Change Percent Move End 2007 Ytd Percent move LME Cu 2870.00 0.00 +0.00 6670.00 -56.97 SHFE Cu* 22910.00 530.00 +2.37 56880.00 -59.72 LME Alum 1505.00 -55.00 -3.53 2403.00 -37.37 SHFE Alu* 11260.00 110.00 +0.99 18180.00 -38.06 COMEX Cu** 127.45 0.00 +0.00 303.05 -57.94 LME Zinc 1135.00 -23.00 -1.99 2370.00 -52.11 SHFE Zinc* 9775.00 120.00 +1.24 18950.00 -48.42 LME Nick 9900.00 150.00 +1.54 26350.00 -62.43 LME Lead 870.00 0.00 +0.00 2550.00 -65.88 LME Tin 9750.00 -150.00 -1.52 16400.00 -40.55 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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