India copper futures lower tailing globals markets

(Updates prices)

MUMBAI May 11 (Reuters) - India copper futures fell on Monday tailing global markets, where losses in stock markets and worries the recent strong Chinese buying may not persist at higher price levels, pressured the metal, analysts said.

The most traded copper June contract MCCM9 was 2.57 percent lower at 227.85 rupees per kg at 7:02 p.m..

Overseas prices of the metal used in power and construction have nearly doubled year-to-date as a drop in LME stocks and a rise in material tagged for delivery have suggested strong buying from China -- the world's biggest copper consumer.

But investors have fretted that much of Chinese demand was merely owed to unsustainable stockpiling at lower prices.

Cancelled warrants -- material earmarked for delivery -- were slightly lower at 70,350 tonnes, from 72,925 tonnes at the end of last week.

Also casting shadows on the demand outlook, traders said large amounts of copper have arrived in China, exceeding demand. Shanghai copper stocks rose 45 percent last week to 27,690 tonnes, their highest since the end of March. [ID:nSHA169628]

"There is a little bit of profit-taking," said Somnath Dey, in-charge of metals and energy research.

Copper would take support at 222 (rupees) and then resume its uptrend till 258, Dey added.

Copper may trade in the range of 225-232 rupees for the day, said Tejas Seth, senior research analyst with SMC Global.

Meanwhile, inventories at LME warehouses dropped by 3,825 tonnes to 385,175 tonnes. Other industrial metals also moved lower tracking copper, they added.

May zinc MZIK9 was 1.71 percent lower at 74.80 rupees per kg, while May lead MLDK9 was 1.25 percent lower at 71.15 rupees per kg at 7:03 p.m.

(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)