June 1 (Bloomberg) -- Copper futures in Shanghai rose for the first day in three after two days of gains on the physical market because of buying by cable and wire makers in China, the world's biggest consumer of the metal.

``Physical prices have been firmer this week after falling last week, so this shows demand is strong and supply is tight in China,'' Wang Zheng, a metal analyst at Shanghai Dalu Futures Co., said by telephone.

Copper for delivery in August on the Shanghai Futures Exchange rose as much as 140 yuan, or 0.5 percent, to 29,790 yuan ($3,599) a metric ton. It traded 30 yuan higher at 29,680 yuan at 10:05 a.m. local time.

On the Changjiang Nonferrous Metals Spot Market, used as a price benchmark in Shanghai, copper for immediate delivery rose as much as 150 yuan yesterday to 34,160 yuan a ton, the second straight rise this week.

That prices in London managed to stay well above $2,960 a ton yesterday also encouraged some buying back by speculators in Shanghai, who had bet London prices would fall by a larger extent due to a weak euro, said Wang.

``If London fell to $2,960, that may signal the start of a downtrend,'' he said.

Copper for delivery in three months on the London Metal Exchange fell $30, or 1 percent, to $3,046 a ton yesterday as a weaker euro made dollar-denominated commodities more expensive for buyers in Europe. It was bid at $3,038 a ton and offered at $3,043 at 10:05 a.m. Shanghai time.

On the Comex division of the New York Mercantile Exchange, copper for delivery in July fell 0.85 cent, or 0.6 percent, to $1.448 a pound in after-hours trade.

To contact the reporters for this story: Chia-Peck Wong in Singapore at cpwong@bloomberg.net.

Last Updated: May 31, 2005 22:10 EDT