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* Tin price touches highest since March 13
(Updates with official prices)
By Eric Onstad
LONDON, June 2 (Reuters) - Copper prices climbed to theirhighest in 2-1/2 months on Tuesday as more signs emerged thatthe economy in China, the world's biggest metals consumer, isextending its recovery from the coronavirus outbreak.
Sales of vehicles, a key demand driver for metals, in Chinaare estimated to have risen 11.7% on the year in May, while theChinese city of Wuhan found no new cases of COVID-19.
Strong physical demand for copper in China, plus tight scrapsupplies, are spurring bearish speculators to close outpositions and supporting its rebound in recent weeks, saidanalyst Nicholas Snowdon at Deutsche Bank in London.
"You can understand the price path so far, reflecting aforced liquidation of shorts in the market, but I think that'sbroadly complete now," he said.
"The key question for further upside is whether Chinesephysical demand can remain as strong going into mid-year as ithas been in the past three months. Realistically, there areseasonal headwinds that are likely to moderate the strength ofthat demand, at least in the near term."
Three-month copper on the London Metal Exchange (LME)
Copper, widely used in construction, transport and powersectors, has gained 26% on the LME since hitting a 45-month lowof $4,371 on March 19.
The most-traded July copper contract on the Shanghai FuturesExchange (ShFE)
* CHINESE STOCKS: Bonded warehouse stocks in China
More gains in stocks are expected as copper output resumesin Peru following coronavirus-linked closures, Commerzbank saidin a note. "Supply in China is therefore likely to increase inview of the greater availability of concentrate and copperscrap, plus rising imports."
* PRICES: LME aluminium
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($1 = 7.1171 yuan)
(Reporting by Eric Onstad;Editing by Jane Merriman and Louise Heavens) ((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter
(( For related news and prices, click on the codes in brackets: LME price overview