* Tight supplies also supporting copper * China demand seen firm but no pressing need to buy copper * Coming Up: U.S. housing starts; 1230 GMT (Updates prices, details) By Manolo Serapio Jr SINGAPORE, July 19 (Reuters) - London copper drifted higher for a third straight day on Tuesday as tight global supplies and hopes Chinese demand will remain firm helped offset investor anxiety over sovereign debt concerns in the United States and Europe. There's no resolution in sight for debt problems in either side of the Atlantic as the White Houses seeks a last-ditch plan with Congress to raise the U.S. debt ceiling and Europe struggles to reconcile competing proposals for a second bailout for Greece while trying to prevent the crisis from spreading through the region. "Despite all these uncertainties, we've seen copper very resilient to any downside risk and that could also be explained beyond the supply issues by what we see as healthy appetite from the Chinese despite their price sensitivity," said Xin Yi Chen, commodity analyst at Barclays Capital. Investors are optimistic demand from top copper consumer China will remain strong in the second half of the year given little sign that its monetary tightening efforts had sharply slowed the world's No. 2 economy, which grew a faster-than-forecast 9.5 percent in the second quarter. Three-month copper on the London Metal Exchange rose $10.25 to $9,704.25 a tonne by 0354 GMT. Technical charts point to LME copper rising to $9,862 so long as it stays above a pivotal support at $9,663, said Reuters market analyst Wang Tao. In Shanghai, the third month copper contract rose half a percent to 72,280 yuan per tonne. While China's appetite remains strong, it "won't be hoovering metal at any price," said Citigroup analyst David Thurtell. Traders said one reason copper prices had been stuck in tight ranges recently is because of reluctance by Chinese consumers to buy the metal at current prices. The spread between front-month Shanghai copper SCFc1 and the third month SCFc3 has switched to a contango of 280 yuan per tonne on Tuesday from a backwardation of as high as 1,110 yuan in late June. "This means there is no pressing need for China to buy from the international market right now. That gives Chinese buyers a little breathing room and I think they'll try to wait for LME prices to come back down to $9,000-$9,200 (a tonne) where they're more comfortable buying," said a Singapore-based trader. "The net result is a waiting game and what breaks first: bullish resolve and justified longer term concern about supply or China's ability to live hand to mouth?" Market participants have been looking at a deficit in global copper supply this year, with shortage risks increased by weather and labour unrest hitting major mines in Chile and Indonesia. Base metals prices at 0354 GMT Metal Last Change Pct Move End 2010 YTD pct chg LME Cu 9704.25 10.25 +0.11 9600.00 1.09 SHFE Cu* 72280.00 370.00 +0.51 71850.00 0.60 LME Alum 2497.25 2.25 +0.09 2470.00 1.10 SHFE Alum* 17615.00 -60.00 -0.34 16840.00 4.60 COMEX Cu** 439.60 -0.90 -0.20 443.95 -0.98 LME Zinc 2430.00 -1.00 -0.04 2454.00 -0.98 SHFE Zinc 18610.00 220.00 +1.20 19475.00 -4.44 LME Nickel 23870.00 45.00 +0.19 24750.00 -3.56 LME Lead 2735.00 5.00 +0.18 2550.00 7.25 LME Tin 27250.00 -100.00 -0.37 26900.00 1.30 LME/Shanghai arb^ 1144 Dollar/yuan 6.4668 \ 6.4673 ** 1st contract month for COMEX copper * 3rd contact month for SHFE aluminium, copper and zinc ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month (Reporting by Manolo Serapio Jr.; Editing by Ed Lane)

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