METALS-Copper gains foothold after hard correction as supply woes persist

Feb 3 (Reuters) - Copper gained a foothold on Tuesday after plunging in the last two sessions, as supply concerns and demand prospects offered support to the red metal.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 climbed 2.60% to close daytime trading at 104,500 yuan ($15,066.54) a metric ton.

The benchmark three-month copper on the London Metals Exchange CMCU3, meanwhile, surged 4.08% to $13,417 a ton as of 0715 GMT.

The moves came after copper marked hard corrections since Friday, after a scorching rally 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, traders said.

Meanwhile, mine disruptions and regional dislocation amid U.S. tariff threats kept supply concerns alive, while strong demand prospects due to the red metal's central role in electrification and AI data centres 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 nine-day Lunar New Year Break in top consumer market China set to begin 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 declining 6.70% to close at 383,340 yuan a ton.

Aluminium SAFcv1 declined 0.96%, zinc SZNcv1 dropped 0.79%, lead SPBcv1 shed 0.98%, and nickel SNIcv1 lost 1.25%.

Elsewhere on the LME, aluminium CMAL3 gained 1.69%, zinc CMZN3 rose 1.11%, lead CMPB3 was up 0.87%, nickel CMNI3 climbed 3.17% and tin CMSN3 surged 5.01%.

($1 = 6.9359 Chinese yuan renminbi)