US copper rallies to 6-month high on Chinese data

NEW YORK, April 13 (Reuters) - U.S. copper futures rallied to their highest levels in six months Monday morning, as falling inventories and signs of economic recovery in China, the world's largest copper consumer, brightened the red metal's demand outlook.

For detailed report on global copper markets, click on [MET/L]

* Copper for May delivery HGK9 was trading up 5.40 cents, or 2.6 percent, at $2.1250 a lb by 10:00 a.m. EDT (1400 GMT) on the New York Mercantile Exchange's COMEX division.

* Morning range from $2.09 to $2.1685 which marked the contract's loftiest price since Oct. 20.

* COMEX estimated electronic futures volume at 8,711 lots by 9 a.m.

* COMEX copper up on the heels of upside limit move in Shanghai copper futures as growing supply tightness and positive industrial output and other data from China lifts sentiment.

* Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 18 percent to 18,766 tonnes, their lowest since early February.

* London Metal Exchange (LME) warehouse stocks fell 7,425 tonnes to 496,775 tonnes on Thursday, their lowest level in nearly three weeks. <LME/STX1>

* Favorable arbitrage opportunities between the Shanghai and LME exchanges seen, with premium in Shanghai copper above 4,600 yuan ($673) a tonne, after taking into account for China's 17 percent VAT.