* Tin strikes record at $27,800 a tonne

* Stocks of copper rise

* Investors keep eye on lead dominant position

(Updates prices, adds detail and comment)

By Rebekah Curtis

LONDON, Jan 24 (Reuters) - Copper prices rose on Monday as concerns about Chinese demand abated, and tin prices hit a record high with supply constraints supporting the outlook for both metals.

Benchmark copper on the London Metal Exchange was at $9,498.75 a tonne at 1155 GMT, versus $9,441 at the close on Friday. The metal used in power and construction hit a record high of $9,781 a tonne on January 19.

Tin edged up earlier to hit a record high of $27,800 a tonne, later turning negative.

"Tin and copper are very supply constrained metals, that's not going to be resolved for many months, if not years," Robin Bhar, an analyst at Credit Agricole, said.

Analysts widely expected a large deficit for the copper market in 2011, while tin prices have been underpinned by supply complications in Indonesia.

Investors fretted about Chinese demand last week, after strong economic growth data there raised concerns about further monetary tightening in the world's top base metals consumer and fanned worries about its demand outlook.

But these fears eased, with analysts broadly confident Chinese demand would remain robust even in the case of monetary tightening.

"With the data coming in strong last week for economic growth there is always the scope for them to raise rates," Bhar said, but he added that the market was not going to turn tail.

"The market's resting easy for the moment," he added.

Investors also focused on French President Nicolas Sarkozy's comments, as he laid out his G20 agenda on Monday, that he wanted regulation of commodity markets.

"I would expect more politicians to come out and make comments on this," said Alex Heath of RBC Capital Markets.

Analysts said the controversy surrounding high food prices could also hit sentiment towards metals.

"It's going to hit back on base metals," Heath said.

STOCKS RISE

Stocks of copper at LME warehouses resumed a recent rise which has caused some caution among investors. Stocks last rose 200 tonnes to 381,500 tonnes.

Lead stocks rose 2,600 tonnes to 266,775 tonnes, lingering around the highest levels since May 1995.

Investors kept an eye on a dominant position controlling 80-90 percent of lead stock warrants and cash contracts on the LME.

Barclays Capital declined to comment on Friday on market talk it was the holder of the position.

Prices of the battery material were at $2,400 a tonne from $2,425 a tonne.

Investors also focused on the backwardation on lead -- a premium for cash material over the three-month contract -- which was at $60 a tonne.

The premium shot up to $85 a tonne on Friday, its highest since October 2007. In late December, in contrast, there was a contango on lead of $0.50 -- a discount for cash over three-month material.

But a stronger U.S. dollar pressured the broader base metals complex, by deterring non-U.S. investors.

Aluminium, at $2,420, was unchanged from Friday's close, while zinc was at $2,301.50 a tonne from $2,318 a tonne.

Undermining prices in lead and zinc, both metals fell through their 100-day moving averages on the charts, a technically bearish signal.

Nickel was at $26,149 a tonne from $26,175 a tonne and tin traded at $27,750 from $27,745 a tonne.

"Tin is looking good from a technical point of view," a trader said.

(Editing by William Hardy)

Source: http://www.forexyard.com/en/news/METALS-Copper-up-and-tin-at-record-on-supply-concerns-2011-01-24T125752Z