UPDATE 8-Zinc up 7 pct on China supply losses, tin jumps

(Updates with detail, quotes, prices to London close)

By Humeyra Pamuk and Anna Stablum

LONDON, May 13 (Reuters) - Zinc prices jumped more than 7
percent on Tuesday, boosted by a fall in supply from China after
Monday's massive earthquake, while tin hit a record high.

A devastating earthquake measuring 7.9 on the Richter scale
hit China's Sichuan province on Monday, killing at least 10,000
people and putting up to half a million tonnes of zinc smelting
capacity out of action. [ID:nSP290184]

London Metal Exchange zinc MZN3 jumped to $2,340 per tonne
-- the highest since April 17 -- before closing at $2,320, up
6.5 percent or $142 from Monday.

"Some smaller zinc smelters may be closed permanently after
the earthquake," analyst Eugen Weinberg at Commerzbank said.

"So prices for refined zinc could go higher," he added.

He said environmental hurdles could keep smaller smelters
closed and expected production of galvanised steel in China, one
of zinc's main areas of use, to pick up making this year's metal
surplus smaller than previously expected.

Tin MSN3 hit a record high of $25,350 per tonne and was
last at $25,150, up from its close on Monday of $24,900/24,950.

Tin prices have gained more than 50 percent since the start
of this year as the market fret about supplies from the world's
top two producers of the metal: China and Indonesia.

Lead MPB3 rose to an intraday high of $2,345 per tonne, up
4.5 percent as the earthquake could also have affected
production at lead mines in Sichuan, an analyst at China's state
research group Antaike said.
Three-months lead MPB3 ended at $2,315 per tonne up from
$2,245/2,250 on Monday and aluminium for delivery in three
months MAL3 gained $17 at $2,945.

Sichuan Aostar Aluminium, the top local producer, and
Emeishan Aluminium maintained normal production.

However, the two Sichuan-based producers were facing
electricity and alumina supply problems after the earthquake
damaged roads and power plants in the province. [ID:nSP248483]

SUPPLY THREATS

Zinc was further underpinned after a strike over pay had
stopped production at Namibia's biggest zinc producer Skorpion
Zinc. The mine, owned by Anglo American (AAL.L: Quote, Profile, Research) (AGLJ.J: Quote, Profile, Research), is the
largest of its kind in Namibia. [ID:nL1186565]

Copper prices also received support from supply concerns,
but a lack of Chinese buying dampened sentiment.

"The key variable in copper is Chinese buying and it has
been weak for some time," said analyst Kevin Norrish at Barclays
Capital.

He added that earlier this year there had been over-buying
by China, the metal's top consumer, leading to inventory levels
rising in both Shanghai and LME warehouses.

Copper MCU3 pared earlier gains and drifted lower as the
dollar strengthened against the euro <EUR=> making dollar-priced
metals more expensive for other currency holders.

In early trade the metal hit an intraday high of $8,350 per
tonne, up 1 percent, but later in the session it fell to a low
of $8,184 before closing at $8,240, down $25 from Monday.

Chile's Supreme Court ruled on Monday that state copper
mining giant Codelco does not have to hire thousands of
subcontract miners into its full-time ranks and union leaders
warned another strike has not been ruled out. [ID:nN12323208]

Also, mineworkers in Peru have delayed a strike that was due
to start on Monday. [ID:nN09477268]

Nickel MNI3 ended $500 higher at $27,050.

Metal Prices by 1729 GMT:
Metal Last Change Pct Move End 2007 Ytd Pct

move
LME Cu 8220.00 -45.00 -0.54 6670.00 23.24
SHFE Cu* 62870.00 740.00 +1.19 56880.00 10.53
LME Alum 2940.00 12.00 +0.41 2403.00 22.35
SHFE Alu* 18915.00 150.00 +0.80 18180.00 4.04
COMEX Cu** 377.00 -1.40 -0.37 303.50 24.22
LME Zinc 2301.00 123.00 +5.65 2370.00 -2.91
SHFE Zinc* 18375.00 465.00 +2.60 18950.00 -3.03
LME Nick 26600.00 50.00 +0.19 26350.00 0.95
LME Lead 2310.00 65.00 +2.9 2550.00 -9.41
LME Tin 25100.00 200.00 +0.80 16400.00 53.05
** 1st contract month for COMEX copper
* 3rd contact month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07

(Editing by Chris Johnson)