* China Feb new export orders fall, PMI still below 50 -HSBC
* LME steadies after gaining over 2 pct Tuesday
* Coming Up: U.S. existing home sales; 1500 GMT
(Adds comment, details, updates prices)
By Manolo Serapio Jr and Rujun Shen
SINGAPORE, Feb 22 (Reuters) - London copper struggled
to extend gains on Wednesday as buying interest was restrained
by poor manufacturing data out of top copper user China and
doubts over Greece's ability to implement punishing debt-cutting
reforms.
Copper has risen more than 11 percent this year, partly
buoyed by hopes Chinese demand would pick up after the Lunar New
Year in January, but demand from the Asian country has remained
slack, raising concern prices could retreat sharply.
And preliminary data showing new export orders shrinking the
most in eight months in February is yet another piece of
evidence that demand from the country, which consumes 40 percent
of the world's copper, may not pick up any time soon.
HSBC flash manufacturing survey showed the sector continued
to contract in February, as it has for most of the past eight
months.
"Copper may have some difficulty rallying from here, given
the poor China manufacturing data," said Ker Chung Yang, an
analyst at Phillip Futures, who sees $8,500 as a key resistance
level.
Three-month copper on the London Metal Exchange was
little changed at $8,455 a tonne by 0715 GMT, after rising 2.6
percent on Tuesday, its biggest single-day gain since Feb. 3.
The most-traded May copper contract on the Shanghai Futures
Exchange rose 0.7 percent to close at 60,490 yuan
($9,600) a tonne.
CHINA IMPORTS SEEN WEAK UNTIL MARCH
Highlighting thin demand in China, copper stocks in Shanghai
warehouses hit their highest level in nearly a decade last week
and analysts warned the country's imports are likely to remain
weak until March.
"Copper prices are likely to remain rangebound in the short
term, before we see any improvement in demand," said a
Shanghai-based trader.
"But in the medium term, copper has a chance to break
higher, with seasonal demand picking up and liquidity in China
increasing."
Wang Chenyu, an analyst at Minmetals Futures, said he
expected Shanghai copper to test 62,200 yuan in the near term, a
level last seen in September, partly due to a more risk-friendly
environment after Greece secured the bailout package.
But despite Greece securing a 130-billion-euro financing
deal from the European Union and the International Monetary
Fund, doubts remained over the country's capacity to take tough
steps to cut its debt mountain, rebuild its economy and avoid a
default in the longer term, keeping gains across risk assets in
check.
Base metals prices at 0715 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8455.00 6.00 +0.07 11.25
SHFE CU FUT MAY2 60490 440 +0.73 9.27
HG COPPER MAR2 383.75 0.10 +0.03 11.69
LME Alum 2255.25 0.25 +0.01 11.65
SHFE AL FUT MAY2 16250 70 +0.43 2.56
LME Zinc 2039.75 11.75 +0.58 10.56
SHFE ZN FUT MAY2 15825 45 +0.29 6.96
LME Nickel 20385.00 155.00 +0.77 8.95
LME Lead 2115.00 -2.00 -0.09 3.93
SHFE PB FUT 15820.00 0.00 +0.00 3.50
LME Tin 24280.00 90.00 +0.37 26.46
LME/Shanghai arb^ 1781
Shanghai and COMEX contracts show most active months
^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
