METALS-Copper ends up, latches on to firmer equities

* Firmer equities lead copper higher

* Analysts raise doubt whether the rally can continue

* Tin jumps more than 5 percent on fund buying

(Changes headline, recasts, updates with New York closing copper prices, adds analyst comments)

NEW YORK/LONDON, April 17 - Copper bounced to a firmer close on Friday, led higher by a positive tone in equity markets and expectations of increased Chinese demand for industrial metals, while tin rallied as much as 6 percent on fund buying.

Copper for May delivery on the New York Mercantile Exchange's COMEX division ended up 2.45 cents at $2.1940 a lb, after dealing in a session range between $2.1275 and $2.2050.

On the London Metal Exchange, copper for three-months delivery closed up $74 at $4,803 a tonne.

"We're seeing an improvement in the equity markets and there seems to be a little bit of (economic) optimism, but there's no question that there is a real Chinese factor to it," said Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey.

U.S. equities rose on Friday after an upbeat consumer survey fueled hopes of economic stabilization and investors bet on strong corporate earnings going forward following the better-than-expected results from Citigroup and General Electric.

Analysts warned, however, that the copper rally would likely run out of steam.

"Zinc, lead and copper have all had amazing rallies. In the short term, things will hold ground or maybe go down a little bit lower," said Citi analyst David Thurtell.

"Demand is still pretty anaemic."

China's stronger demand for copper imports in 2009, coupled with recent upbeat economic reports from the United States and continuous drawdowns in warehouse stock levels have helped to drive the price of copper up to its highest level in six months earlier this week -- just below $5,000 a tonne in London and $2.25 a lb in New York.

On Friday, inventories in LME registered warehouses fell by 5,575 tonnes to 469,625 tonnes, having fallen nearly 80,000 tonnes since mid-February.

CANCELED WARRANTS

Canceled warrants -- stock already tagged for delivery -- eased to 64,400 tonnes from 66,275 the previous day. Stocks in Shanghai warehouses rose by 3,969 tonnes.

"Metal keeps flowing into China but at these prices we strongly believe the State Reserves Bureau is out of the market. No one really seems to know where it's going," a trader in Sydney said. Some analysts thought the trend is not sustainable.

Copper cathode imports into China have surged this year, exceeding the early 2007 peak, but total copper imports were up more modestly as scrap and concentrate imports fell, Citi analysts said in a research note.

"Is it sustainable? Probably not," the bank said. "Cathode imports are being driven by a shortage of scrap, stock building and SRB buying, and is probably well ahead of demand."

Last month, China's refined copper output slipped 0.2 percent from February's three-month high to 319,400 tonnes as producers ran short of copper scrap, a raw material, and smelters held back from full production because of weak demand.

In other metals, dominant positions controlling more than 90 percent of cash warrants on LME stocks and fund buying have given tin prices a boost. The metal closed up $700 at $12,250 a tonne -- its highest level since late January.

Supply worries for the metal were reflected in the premium for cash material over the three-month contract at $88 a tonne. That was below levels above $200 seen last week, but it above the $32.5 seen in early February.

Lead was supported by similar factors. The premium for lead was small at about $3, but compared with a discount of about $16 in late March.

Zinc ended at $1,557 from $1,495 on Thursday, while lead was at $1,555 from $1,504.

Aluminum was at $1,486 from $1,482 and nickel closed at $12,850 a tonne from $12,450. Nickel hit a day's high of $12,884, its highest since early January. (Additional reporting by Rebekah Curtis in London)