METALS-Shanghai, LME copper drift after soggy US data

SINGAPORE, Sept 28 (Reuters) - Copper prices in Shanghai
and London drifted in early trade on Monday after disappointing
U.S. durable goods and homes sales data were offset by a
surprise fall in inventories.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange MCU3
rose $5 to $5,995 a tonne by 0104 GMT. When Shanghai closed on
Friday, LME copper was trading around $5,967, when it touched a
one-month low of $5,900.

* Shanghai's benchmark third month copper contract SCFc3
fell 50 yuan to 47,170 yuan. The more active January contract
SCFc4 was flat at 47,140 yuan.

* Data on Friday showed U.S durable goods orders saw their
biggest drop in seven months, and new home sales fell short of
forecast.

* But fears that bullish fervour may have run ahead of the
economic outlook were tempered by a fall in Shanghai copper
stocks, which fell 5,559 tonnes to 98,689, their first decline
since July. CU-STX-SGH

* Data last week showed China's refined copper imports fell
in August, down by a quarter from July, but at just under
220,000 tonnes were still the seventh highest inflow ever.

* Imports are seen slowing to around 150,000 a month for
the rest of the year, but the softening in prices is starting
to awaken buyers' appetite for the metal.

* "Chinese buyers will be sniffing around for metal at
these numbers and buying would really take off as we get closer
to $5,000. If prices were to fall away from those levels
restocking would take off very swiftly," a trader in Singapore
said.

MARKETS NEWS

* U.S. stocks fell for a third straight day on Friday on
disappointing housing and durable goods data, while Research In
Motion's lackluster results dented optimism about technology
spending. The Dow Jones industrial average .DJI fell 42.25
points, or 0.44 percent, to 9,665.19. [.N]

* The U.S. dollar fell to its lowest in nearly eight months
against the yen in early Asian trade on Monday as Japanese
repatriation before the end of the fiscal year picked up. The
dollar fell to as low as 89.24 yen JPY=, its weakest since
Feb. 5, when it dropped to 89.20 yen. [USD/]

* Crude oil rose on Monday as the dollar sunk to trade
around $66.37 per barrel, adding to Friday's slight gains on
tension around Iran's nuclear programme and improving consumer
sentiment outweighed poor U.S. economic indicators. [O/R]

DATA/EVENTS

* The following data and events are expected on Monday:

- U.K. house prices for August (1000 GMT)

- Chicago Fed August national activity index (1230 GMT)
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PRICES
Base metals prices at 0104 GMT
Metal Last Change Pct Move End 2008 Pct chg
09
LME Cu 5995.00 5.00 +0.08 3060.00
95.92
SHFE Cu* 47170.00 -50.00 -0.11 23840.00
97.86
LME Alum 1815.00 0.00 +0.00 1535.00
18.24
SHFE Alum* 14775.00 30.00 +0.20 11540.00
28.03
COMEX Cu** 273.10 0.00 +0.00 139.50
95.77
LME Zinc 1870.00 -10.00 -0.53 1208.00
54.80
SHFE Zinc 15065.00 15.00 +0.10 10120.00
48.86
LME Nickel 16850.00 -50.00 -0.30 11700.00
44.02
LME Lead 2190.00 5.00 +0.23 999.00
119.22
LME Tin 14375.00 -25.00 -0.17 10700.00
34.35
LME/Shanghai arb^ 718
Dollar/yuan 6.8273 \ 6.8283
** 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 Nick Trevethan; Editing by Michael Urquhart)