METALS-Copper gains a foothold after hard correction

Feb 3 (Reuters) - Copper gained a foothold on Tuesday plunging in consecutive sessions, as investors saw supply concerns and demand prospects remain supportive for the red metal.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.50% to 101,340 yuan ($14,603.99) a metric ton as of 0320 GMT, after gaining as much as 0.80% earlier in the session.

The benchmark three-month copper on the London Metals Exchange CMCU3, meanwhile, rose 0.82% to $12,997.50 a ton.

The moves came after copper marked hard corrections since Friday, after setting record highs on both exchanges. Shanghai copper had declined as much as 13.65% to 98,580 yuan from a record high of 114,160 yuan, while the London benchmark had lost as much as 14.54% from its $14,527.50 peak.

Rebounds in the price of gold XAU= and silver XAG= also played a part in the metals market recovery on Tuesday.

After recent volatility, copper's strength has persisted, as mine disruptions and regional dislocation amid U.S. tariff threats keep supply concerns alive, while strong demand prospects due to the red metal's central role in electrification and AI data centers are still in place.

"While volatility may persist in the near term, copper’s underlying narrative remains intact, and the dip should ultimately attract renewed buying once macro conditions settle," IGN analysts said in a note.

The decline in copper prices is also expected to boost demand, despite the proximity to a 9-day Lunar New Year Break in top consumer market China from February 15, which usually hits market activity.

The Yangshan copper premium SMM-CUYP-CN, a gauge of Chinese demand for imported units, surged to $39 a ton on Monday after touching $20 on Thursday.

Among other SHFE base metals, tin SSNcv1 is still leading losses, with the most-traded contract plunging 9.65% to 371,210 yuan a ton.

Aluminium SAFcv1 declined 2.48%, zinc SZNcv1 dropped 1.47%, lead SPBcv1 dipped 1.31%, and nickel SNIcv1 lost 2.34%.

Elsewhere on the LME, aluminium CMAL3 nudged 0.10% lower, zinc CMZN3 dipped 0.39%, and lead CMPB3 was little changed, down by only 0.80%. Nickel CMNI3 and tin CMSN3 moved in the opposite direction against their Shanghai peers, up 1.44% and 2%, respectively.

Tuesday, February 3

DATA/EVENTS (GMT)

0745 France CPI (EU Norm) Prelim YY, MM Jan

0745 France CPI Prelim YY, MM NSA Jan

($1 = 6.9392 Chinese yuan renminbi)