* Metals up after Bernanke says recession likely over * Weak dollar adds to improved sentiment * Worries on a slowdown in Chinese imports cap further gains (Recasts, updates prices and comments, previous SINGAPORE) By Humeyra Pamuk LONDON, Sept 16 (Reuters) - Copper climbed 1.6 percent on Wednesday, as upbeat comments from the U.S. Federal Reserve Chairman Ben Bernanke on the economy and strong U.S. retail and manufacturing data lifted sentiment. Stock markets and other commodity prices including gold climbed after Bernanke said the worst U.S. recession since the Great Depression was probably over. The dollar fell against a basket of currencies, also supporting metal prices. Copper for three months delivery on the London Metal Exchange rose to $6,324 a tonne by 0932 GMT, versus $6,210 a tonne at the close on Tuesday. "Both the U.S. retail sales and Bernanke are very positive for the metals, that's why they're rising," said Carl Firman, an analyst at Virtual Metals. U.S. retail sales rose in August at the fastest pace in 3-1/2 years and a gauge of New York State manufacturing hit a near two-year high, offering hope for a solid recovery from a severe recession. But the market still had some reservations about fundamentals in metals. "There are fundamental concerns. For example, Chinese imports of unwrought copper for the last 2 months have declined. There are concerns that there is plenty of metal out there." Firman said. Copper imports were down for the second month in a row, falling 20 percent from July, with analysts predicting additional moderation in the coming months. LIMITED UPSIDE? Despite expectations of a recovery in the coming months, copper inventories reflected poor demand, capping further gains in prices, analysts said. "Recent increases in exchange copper stocks and a moderation in China's refined copper imports have limited the upside to the copper price. And in our view, leave some downside risk over the balance of 2009," David Moore, commodities strategist at Commonwealth Bank of Australia, said in a report. On the stocks front, LME copper inventories rose 675 tonnes on Wednesday to 323,225 tonnes, up nearly a quarter since July. Early expectations were for weekly Shanghai copper stocks to be flat to slightly lower when data is released on Friday. China may boost tax rebates on outflows of semi-finished and finished goods, including those made from nonferrous metals, during the next few months, which could spur domestic demand for the metals by 2-3 percent in China. Tin was firmer at $14,500 a tonne from $14,225 a tonne, while the backwardation -- premium for the cash material over three months delivery -- stood at $375 a tonne, compared with Tuesday's $515 a tonne as LME data showed a dominant position holding over 90 percent of the stock warrants. But analysts did not see much of an impact on the price as they did not see a shortage of material with tin stocks having risen to above 22,000 tonnes from 3,015 last November. Aluminium was at $1,885 a tonne from $1,855 a tonne, shrugging off stocks hitting a new record high of 4.629 million tonnes, while zinc gained to $1,894 a tonne, versus $1,861. Nickel rose to $17,246 from $16,750. Battery making material lead was firmer at $2,222 from $2,166.5 a tonne. Metal Prices at 0932 GMT Metal Last Change Percent Move End 2008 Ytd Percent move COMEX Cu 284.60 1.75 +0.62 139.50 104.01 LME Alum 1880.00 46.00 +2.51 1535.00 22.48 LME Cu 6317.00 107.00 +1.72 3060.00 106.44 LME Lead 2218.00 51.50 +2.38 999.00 122.02 LME Nickel 17175.00 530.00 +3.18 11700.00 46.79 LME Tin 14400.00 200.00 +1.41 10700.00 34.58 LME Zinc 1885.00 24.00 +1.29 1208.00 56.04 SHFE Alu 14915.00 55.00 +0.37 11540.00 29.25 SHFE Cu* 48770.00 390.00 +0.81 23840.00 104.57 SHFE Zin 15230.00 80.00 +0.53 10120.00 50.49 ** 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 Nick Trevethan in Singapore, Editing by Anthony Barker)

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