METALS-Copper keeps pushing towards January record high, aluminium near 4-year high

By Polina Devitt

LONDON, May 13 (Reuters) - Copper prices rose for an eighth session on Wednesday, reaching highest since January 29, due to the bullish technical signals and outperforming prices in the U.S., while aluminium traded near its four-year high due to worries about market deficit.

Benchmark three-month copper CMCU3 on the London Metal Exchange gained 0.8% to $14,138 a metric ton in official open-outcry trading, after posting a record close on Tuesday.

The LME's index of six base metals contracts .LMEX closed at a record high on Tuesday with copper steadily pushing closer to its intraday record high of $14,527.50 hit on January 29 and strong prices for the entire complex.

Copper is supported by bets on future demand growth, recent strong factory activity data easing concerns about any immediate effect on global economies from the Middle East conflict and worries about availability of sulphuric acid for some copper producers due to the closure of the Strait of Hormuz.

The Yangshan copper premium SMM-CUYP-CN, a gauge of China's appetite for importing copper, rose 3% to $72 a ton, highest since mid-April, suggesting strong demand in the top metals consumer despite rising prices.

In the U.S., the most active COMEX July copper futures HGc3 gained 1.8% to $6.6485 a lb with HGc1 touching a record high.

Copper in the U.S. is trading at a premium of about $500 a ton over LME copper with Washington expected to decide by end-June whether to impose import tariffs on refined copper.

"The anticipation of policy action is drawing metal into the United States and tightening availability elsewhere, adding another layer of support to the global market," Neil Welsh, head of metals at broker Britannia Global Markets, said in a note.

LME aluminium rose 2.4% to $3,649 a ton in official activity after hitting $3,657, highest since April 16. The metal is trading near its four-year high as the Iran war disrupted supply from producers in the Middle East.

Providing further support, daily LME data showed that on-warrant aluminium stocks in the LME-registered warehouses fell to 301,725 tons after 30,000 fresh cancellations in Malaysia. 0#MALSTX-LOC

Zinc CMZN3 rose 0.1% to $3,535, while lead CMPB3 was last up 0.4% at $2,004.5. Both metals hit highest since late January.

Tin CMSN3 gained 1.7% to $55,750 and nickel CMNI3 added 1.5% to $19,235. Chinese companies operating in giant nickel producer Indonesia warned that tighter ore quotas and local tax hikes threaten investment.