(Updates prices) By Eric Onstad LONDON, Feb 28 (Reuters) - Copper prices extended arebound on Tuesday as speculators adjusted positions on hopesfor a demand revival in top metals consumer China. Benchmark copper on the London Metal Exchange (LME)climbed 1.9% to $8,965.50 a tonne by 1700 GMT after gaining 1%on Monday. The contract, however, was down 2.7% on a monthly basis forits first such decline since October. U.S. Comex copper futures gained 2.1% to $4.09 per lb. LME copper bounced from an important level for investorswatching technical signals, said Ole Hansen, head of commoditystrategy at Saxo Bank in Copenhagen. Gains are being driven by profit-taking by speculators whohad taken short positions as well as some fresh longs byinvestors taking advantage of a cheaper level to enter themarket, he added. "I'm relatively constructive on the price action goingforward and, not least, given the fact that the bounce has takenplace at an important technical level," Hansen said. "That indicates that the weakness we've seen is more acorrection within a market that wants to go higher." At Monday's low point, LME copper had dropped 9% sincehitting a seven-month peak in January at $9,550.50 a tonne. InJanuary, copper rallied largely on hopes that the loosening ofstrict COVID-19 controls in China would boost demand. Copper demand in China remained weak in February, weighingon prices, but analysts expect the Chinese economy to recoverstrongly from as early as March, with the government likely toroll out more stimulus at the National People's Congress. The Yangshan copper premium , which reflectsdemand to import copper into China, rose to $26.50 a tonne onMonday for its highest since Feb. 1. Among other metals, LME aluminium rose 0.4% to$2,371.50 a tonne and zinc gained 0.6% to $3,006.50while nickel slid 3.2% to $24,685, lead eased by0.3% to $2,105.50 and tin dropped 2.6% to $24,805. For the top stories in metals and other news, click or (Reporting by Eric OnstadAdditional reporting by Mai Nguyen in Hanoi and Polina Devitt inLondonEditing by Shounak Dasgupta and David Goodman)
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