MELBOURNE, Feb 8 (Reuters) - London copper prices climbed off seven-week lows on Thursday, buoyed by solid China import
figures that bolstered optimism over the health of demand from the world's biggest metals user. China's trade machine kicked up a gear in January after
stumbling the previous month, with exports and imports both growing much more than expected, getting the economy off to a solid start to the year.
However, with jitters in wider markets following an equity shakeout this week, and an approaching holiday in China set to
crimp near-term metals demand, metals markets looked vulnerable, broker Kingdom Futures said in a report. "The metals have started the day on ... a nervous footing
and as the Chinese holiday approaches there could yet be another round of selling before the weekend." FUNDAMENTALS: * COPPER: London Metal Exchange copper had risen 0.4
percent to $6,907.50 a tonne by 0704 GMT, reversing sharp losses from the previous session when prices fell 2.8 percent to the
lowest since Dec. 19 at $6,865 a tonne. * TECHNICALS: Prices also pierced support at the 100-day moving average near $6,883, damaging copper's technical picture.
* SHANGHAI COPPER: Shanghai Futures Exchange copper fell 1.8 percent to 51,840 yuan ($8,196) a tonne and finished below the 200-day moving average, sending a "sell" signal to
chart-following funds. * IMPORTS: China's unwrought copper imports fell for a second straight month in January as winter restrictions on the
construction sector and high domestic production rates continued to crimp demand for metal from overseas. * SCRAP CONCERNS: Traders were likely to import more copper
cathode to China given uncertainty over smelter feed supply as new restrictions on China's scrap imports come into force, said
analyst Dan Morgan at UBS in Sydney. "I think imports will be strong in the first half of the year." * SHARES: Asian shares flirted with six-week lows on
Thursday as U.S. bond yields crept towards four-year highs as investors fretted that low borrowing costs enjoyed by companies
for many years may be endangered by the threat of rising inflation. * ZINC CHARGES: Zinc smelters are set to accept lower fees
for processing concentrate into metal when annual contracts are hammered out next week at a conference in California, as a
crunch in mine supply stretches into a third year.
