REFILE-METALS-Copper up on weak dollar, brighter demand outlook

(Refiles to fix analyst's name in paragraph 12)

* Rising copper stocks little impact on prices

* Codelco increases premium for copper to Yokohama

By Rujun Shen and Edmund Klamann

SHANGHAI, Nov 9 (Reuters) - London copper rose more than 1
percent on Monday, supported by a weak dollar and a brighter
demand outlook, after Codelco raised premium charges for Asian
customers in 2010.

Chile's Codelco, the world's largest copper miner, has said
the term premium for copper to the Japanese port of Yokohama
will rise 15 percent a year earlier to $75 a tonne in 2010.
[ID:nT230071]

The premium hike indicated that robust demand is expected
from the region next year, supporting copper prices, analysts
said.

Three-month copper futures on the London Metal Exchange
MCU3 rose $90 to $6,580 a tonne by 0702 GMT, reversing losses
in the previous session caused by soft U.S. job data released
on Friday.

Shanghai's benchmark third-month copper futures SCFc3
edged up 0.3 percent to close at 51,310 yuan a tonne.

The U.S. unemployment rate jumped to 10.2 percent in
October, a 26-1/2-year high, but closer inspection of the data
showed that payroll losses kept declining and job losses for
earlier months were revised lower. [ID:nN06178752]

Analysts and traders said the disappointing job data would
not necessarily be bad news for metals.

"The high unemployment rate will push the Federal Reserve
to maintain the low interest rate and keep abundant liquidity
in the market," said Liang Zhigang, an analyst at Star Futures.

"If the unemployment rate lowered significantly, the Fed
would probably change monetary policy, which might add pressure
to commodities."

The dollar fell on Monday after a G20 meeting and U.S.
unemployment data did little to alter the view that U.S. rates
would stay low for a while, supporting shares and the
Australian and New Zealand dollars. [USD/]

The market is also closely watching China's October trade
and output data due later in the week.

"Investors are a little cautious ahead of the data release
-- if October's imports data turned out weak, it would indicate
the current prices were the result of short-term speculation
without support from fundamentals," said Peng Qiang, an analyst
at COFCO Futures.

China's October imports of unwrought copper and
semi-finished copper products are expected to fall after a
surprisingly strong inflow in September, hit by poor margins
for spot imports and delays to contracted shipments.
[ID:nHKG157207]

Some traders and analysts, however, expected copper prices
to remain trapped in narrow price ranges, if the balance of
bearish and bullish factors stays.

"There won't be much going on in the next week or two,
unless some major news breaks. London copper is likely to be
trading in the range of $6,480 and $6,600," said a
Shanghai-based trader.

Shanghai Futures Exchange copper stocks rose 1,440 tonne
last week to 104,275 tonnes, the highest since last April 2004.
LME's copper inventories kept rising on Friday, hitting a near
6-month high of 385,575 tonnes.

But the mounting inventories have not made much of an
impact.

"Besides the growing stocks, there isn't really more
serious bearish news for copper," said Zhou Jie, an analyst at
Shanghai CIFCO Futures.

"The high stocks indicate pressure on spot prices at this
moment, but looking forward investors are still quite bullish
on copper."

Base metals prices at 0702 GMT
Metal Last Change Pct Move End 2008 Pct chg
09
LME Cu 6585.00 95.00 +1.46 3060.00
115.20
SHFE Cu* 51310.00 170.00 +0.33 23840.00
115.23
LME Alum 1925.00 15.00 +0.79 1535.00
25.41
SHFE Alum* 15185.00 -20.00 -0.13 11540.00
31.59
COMEX Cu** 294.55 0.00 +0.00 139.50
111.15
LME Zinc 2205.00 31.00 +1.43 1208.00
82.53
SHFE Zinc 16965.00 80.00 +0.47 10120.00
67.64
LME Nickel 17550.00 200.00 +1.15 11700.00
50.00
LME Lead 2285.00 35.00 +1.56 999.00
128.73
LME Tin 14825.00 75.00 +0.51 10700.00
38.55
LME/Shanghai arb^ 1283
Dollar/yuan 6.8263 \ 6.8273
** 1st contract month for COMEX copper
* 3rd contact month for SHFE aluminium, copper and zinc
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month