Copper eases on profit taking, tin hits record

By Alastair Sharp

LONDON (Reuters) - London Metal Exchange copper eased on Thursday as investors took profits after it failed to break through a record high, but the metal was supported by supply concerns and bullish sentiment.

Earlier in the session, tin for delivery in three months hit an all-time high of $20,990, before closing at $20,700/20,750 from Wednesday's close of $20,650/20,850.

The dollar's recovery, after hitting a low against the euro earlier in the session, weighed on copper, dealers said.

Copper shed $110 or 1.3 percent to close at $8,620 after earlier hitting $8,818 -- just below the record $8,820 hit in March.

"Copper has risen quite strongly for the last couple of days so it was due for a bit of a correction. But the price fall is quite small, said John Kemp, economist at Sempra Metals.

"Sentiment is still fairly bullish for copper," he said.

The industrial metal -- a key indicator of real economic activity -- has risen around 30 percent since the start of the year, driven largely by investors entering commodity markets.

Early in the session the metals complex was pushed higher as the U.S. currency fell to a record low against the euro and a weaker dollar gives holders of other currencies more purchasing power in dollar-denominated commodities.