Copper rose on Tuesday to its highest in more than two weeks, with sentiment buoyed by stronger growth in Japan and receding fears of policy tightening in China, the world's largest consumer of industrial metals.
Benchmark copper on the London Metal Exchange hit $7 039.50 (R54 204) a tonne, the highest since January 28.
"Japan's growth data are given base (metals) a much needed boost," a London-based metals trader said. "People are worried Chinese tightening will hurt demand, but that seems to have receded , if only for now."
The copper price has risen by about 11 percent from early February's 3-1/2-month lows.
Japan's economy grew faster than expected in the fourth quarter of last year, spurred by a rebound in domestic demand and corporate investment.
"The market was cautious, with reports suggesting that momentum was likely to fade on the dwindling impact of Japan's government spending," ANZ said in a note.
Last week China raised the level of reserves banks must hold for the second time this year.
Traders said the dollar, which makes metals cheaper for holders of other currencies when it falls, would play a key role in the direction for prices.
"The market is also waiting for the outcome in Greece," the trader said. "Chaos will follow any default."
PRICES
* Three-month copper on the London Metal Exchange was trading at $6 993 a tonne at 10:56 SA time compared with $6 870 at the close on Monday.
* Aluminium was at $2 079 a tonne from $2 054.
DATA/EVENTS
* US Empire State Index for February due at 15:30 SA time, net capital inflows for December due at 16:00 SA time.
* German Zew data for February due at 12:00 SA time.
MARKET NEWS
* The euro edged up but remained near nine-month lows against the dollar on Tuesday as the outcome of a meeting of euro zone finance ministers failed to instil confidence that Greece's debt problems would be resolved quickly.
* Oil rose on Tuesday to above $74.50, as the euro recovered from nine-month lows and pressure stepped up for more sanctions against Iran.
* Asian share markets posted mild gains with Australian stocks boosted by upbeat earnings from lender Westpac.
FUNDAMENTALS
* Chile's copper export revenues, boosted by a recovery in prices, more than doubled in January to $3.373 billion from the same month a year ago, the central bank said on Monday.
* Indonesia's refined tin exports were estimated to have risen to 6 774.57 tonnes in January, up from 6 185.74 tonnes a year ago, trade ministry data showed on Tueday.
TECHNICALS
* Copper support at $6 800 a tonne, resistance at $7 194 and 14-day RSI at 52.
* Aluminium support at $2 020 an ounce, resistance at $2 165 and 14-day RSI at 52. - Reuters
