Dec. 19 (Bloomberg) -- Copper rose in Shanghai as investors deemed a decline yesterday excessive amid signs of steady demand in China, the world's largest consumer of the metal.

Spot copper prices in Changjiang, Shanghai's biggest cash market, have held above 56,000 yuan ($7,590) a metric ton since Nov. 23 even as copper futures fell 3.6 percent in the same period.

``We're seeing good buying levels in the physical market as well as falling warehouse inventories,'' Yuan Fang, a metals futures trader at Shanghai East Asia Futures Co., said today. ``These signal domestic demand may not be as bleak as some people think.''

February-delivery copper on the Shanghai Futures Exchange rose as much as 0.7 percent, or 380 yuan, to 53,800 yuan a ton, and traded at 53,570 yuan at 9:45 a.m. local time.

Copper for delivery in three months on the London Metal Exchange fell 0.2 percent to $6,360 a ton the same time, after closing little changed yesterday at $6,380.

March-delivery copper on the Comex division of the New York Mercantile Exchange was at $2.8845 a pound, reversing yesterday's 0.2 percent loss.

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

Last Updated: December 18, 2007 21:34 EST