METALS-LME copper up, but set for biggest weekly drop in four
SINGAPORE, March 22 (Reuters) - London copper rose on Friday on signs of resurfacing Chinese demand and a U.S. recovery, but worries over a Cypriot default and a deepening economic malaise in the euro zone put the metal on track for its biggest weekly loss in a month.
* Three-month copper on the London Metal Exchange rose 0.79 percent to $7,639.75 a tonne by 0117 GMT, reversing losses from the previous session when it fell half a percent.
* Copper prices are headed for a 1.5 percent drop this week, biggest decline since late February. The prices are recovering from a seven-month trough at $7,486.25 a tonne hit on Tuesday but are still down more than three percent on the year.
* The most-traded July copper contract on the Shanghai Futures Exchange fell 0.34 percent to 55,840 yuan ($9,000) a tonne.
* The European Union gave Cyprus till Monday to raise the billions of euros it needs to secure an international bailout or face a collapse of its financial system that could push it out of the euro currency zone.
* Economic malaise in the euro zone deepened in March even before Cyprus ran into debt trouble, but manufacturing in the United States and China improved, surveys showed on Thursday.
* A clutch of data pointed to growing momentum in the U.S. economy during the first quarter, with jobless claims trending lower and factory activity and homes sales both on the rise.
* Mexican miner Grupo Mexico will produce 850,000 tonnes of copper this year, the company's chief financial officer Daniel Muniz said on Thursday.
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* Asian shares were pressured on Friday by fears Cyprus may default on its debt, while deteriorating euro zone economic activity underscored the troubles ailing the region.
* The yen held firm as investors scrambled to cover bearish positions after the new Bank of Japan governor played down the chances of an emergency meeting, while dour economic news and Cyprus debt crisis kept the euro pressured.
DATA/EVENTS (GMT) 0745 France Business climate 0900 Germany Ifo business climate 1930 U.S. CFTC commitment of traders data
PRICES Base metals prices at 0117 GMT
Metal Last Change Pct Move YTD pct chgLME Cu 7639.75 59.75 +0.79 -3.65SHFE CU FUT JUL3 55840 -190 -0.34 -3.19HG COPPER MAY3 345.45 1.95 +0.57 -5.42LME Alum 1930.50 2.50 +0.13 -6.78SHFE AL FUT JUN3 14710 -35 -0.24 -4.14LME Zinc 1938.50 4.50 +0.23 -6.06SHFE ZN FUT JUN3 14965 -580 -3.73 -3.73LME Nickel 16915.00 20.00 +0.12 -1.40LME Lead 2180.00 7.50 +0.35 -6.84SHFE PB FUT 14530.00 -55.00 -0.38 -4.72LME Tin 22690.00 95.00 +0.42 -3.03LME/Shanghai arb^ -295
Shanghai and COMEX contracts show most active months ($1 = 6.2143 Chinese yuan)
(Reporting by Melanie Burton; Editing by Himani Sarkar)