* LME copper steady ShFE down 0.2 pct, pares losses
* Metals may trade sideways for a while-analyst; charts more
bearish
* Coming Up: US ICSC chain store sales; 1145 GMT
(Updates prices)
By Nick Trevethan
SINGAPORE, June 7 (Reuters) - London copper was unchanged on
Tuesday, reversing earlier losses while Shanghai futures drifted
lower following a three-day weekend, with bearish economic
sentiment cushioned by a strike at Chile's fourth biggest copper
mine.
Three-month copper on the London Metal Exchange was
unchanged at $9,135 a tonne by 0711 GMT, having earlier touched
an intraday low of $9,068.50.
The most active contract on the Shanghai Futures Exchange
SCFcv1, August, fell 0.2 percent to 68,260 yuan per tonne. The
price gap between the two markets widened to 1,000 yuan from 500
yuan on Friday.
"I think metals will trade sideways for a while. There are
so many conflicting influences. Copper has been tracking the
euro closely, and to an extent, gold," said Natalie Robertson,
analyst at ANZ in Melbourne.
"The risk-off on the demand side after weak economic data is
countering the more supportive influence from supply disruptions
from Chile and potential pick up in demand from China."
U.S. Federal Reserve officials on Monday said recent
economic data has been disappointing, with one suggesting it
could delay the Fed's exit from its extremely easy monetary
policy. [ID:nN06299146]
The euro edged up, steadying from a slide in a relatively
subdued session overnight after the Eurogroup chairman said the
common currency was overvalued.
A strike at Codelco's El Teniente -- which produces about
2.5 percent of the world's mined copper -- has cost the
state-owned company $30 million and cut output at the 404,000
tonne-per-year operation by 60 percent. [ID:nN06282313]
"The general tone is bullish. Supportive factors include the
output troubles in Chile and the chance of an extension of
quantitative easing," said a trader in Hong Kong.
"There was some early selling that was soaked up and perhaps
we may see a break out to the upside now."
He planned to buy copper below $9,050 and short the market
towards $9,200 with the intention to buy again on a move much
above $9,215.
"With something from Chile, the dollar or QE we could bounce
up and the longer we nibble at that $9,200, the weaker the
resistance becomes."
Technically, London copper could extend losses to towards
$8,900, said Reuters analyst Wang Tao.
The fall from the May 31 high at $9,278.50 to a low at
$8,905.75 has been structured within a five-wave mode, which
indicates prices could extend below the low after completing a
moderate consolidation around $9,150 during the previous trading
session, he said.
Shanghai lead SPBcv1 rose 0.8 percent to 17,030 yuan,
chasing a rise of 4 percent on the LME in the previous two
sessions. LME lead prices also rose almost 1 percent.
Base metals prices at 0711 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 9135.00 0.00 +0.00 -4.84
SHFE CU FUT AUG1 68260 -160 -0.23 -5.00
LME Alum 2676.75 16.75 +0.63 8.37
SHFE AL FUT AUG1 17225 285 +1.68 2.29
HG COPPER JUL1 414.05 0.70 -0.04 -6.73
LME Zinc 2279.00 7.00 +0.31 -7.13
SHFE ZN FUT AUG1 17475 00 +0.00 -10.27
LME Nickel 22735.00 105.00 +0.46 -8.14
LME Lead 2525.00 23.00 +0.92 -0.98
SHFE PB FUT SEP1 17030 140 +0.83 -7.19
LME Tin 26290.00 285.00 +1.10 -2.27
LME/Shanghai arb 997
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
