METALS-Copper rises on optimism about demand outlook

* Stock markets rise on earnings optimism

* Copper inventories rise again


LONDON, Oct 12 (Reuters) - Copper prices rose on Monday as a
recent raft of improving data brightened the demand outlook, but
optimism was capped by a fresh rise in inventories.

Copper for three-months delivery on the London Metal
Exchange traded at $6,265 a tonne in official rings from a close
of $6,230 on Friday.

"For aluminium and copper there should be a seasonal pick-up
in the fourth quarter," said Andrey Kryuchenkov, analyst at VTB
Capital. "But it won't be as pronounced as in previous years.
The first quarter of 2010 looks a bit better."

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Aluminium , used in transport and packaging, traded at
$1,949 from $1,909. The metal hit a day's high of $1,957, its
highest since mid-September.

Aluminium prices could rise further in the short term as
restocking across the supply chain overcomes the impact of
excess inventory and capacity in the market, JP Morgan said.
[ID:nL9662064]

Zinc was at $2,081 from $2,033 and battery material
lead was at $2,287 from $2,249.

China's Henan Yuguang Gold & Lead Co Ltd , the
country's top lead producer, said on Saturday the smelter would
shut down its sintering system which can produce 4,000 tonnes of
lead bullion. [ID:nSHA231018]

Tin was quoted at $14,700/14,750 from $14,800.

24 Hour Base Metals

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Nickel was quoted $18,900/18,925 from $18,750.

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