By Nick Trevethan
SINGAPORE (Reuters) - Base metals were little changed in London and Shanghai on Tuesday as equity markets recovered some poise after a sustained period of turbulence triggered by fears over a global credit market squeeze.
Shanghai's most active November copper eased 250 yuan to 62,870 yuan by midday, following Monday's 2.8 percent rally.
London three-month copper futures were up $40 at $7,060 a tonne by 0331 GMT having touched $6,730 last Thursday, their lowest since late March after global credit worries and plunging equity markets spilled over into metals.
"It looks like we are over the worst of the volatility for the time being, though that's a perilous prediction. The main threat to metals now is another bout of global market dysentery," Gerard Burg, analyst at National Australia Bank said.
"The turnaround in equities is encouraging, and if stocks start to run down we could see more upside potential. At $7,000 copper is not especially cheap but it is well off the highs and some may see this as a good buying opportunity."
LME copper inventories rose 475 tonnes to 121,025 on Monday, equivalent to around 2.5 days of world consumption.
In London, mining stocks comprised five of the top 10 biggest gainers on the FTSE 100. Mining shares in Australia, including BHP Billiton and Rio Tinto were firm on Tuesday adding to strong gains in the previous session.
Bullish sentiment was supported by threats to supply, including last's week's rejection of a pay offer by workers at Southern Copper's Cuajone mine in Peru.
In Mexico, talks to resolve a three-week strike at Grupo Mexico's Cananea copper mine began on Monday.
"It was a meeting where the company ... and the union presented their points of view. We will analyse them," union official Carlos Pavon told Reuters on Monday.
It was unclear when the next talks would take place.
LME aluminium rose $15 to $2,482.
"Long-term support is located around $2,450. A small consolidation and rally is expected in this area. A fall below support has new support at $2,300," Daryl Guppy of Guppytraders.com said.
He said that there was no evidence of potential change from the downtrend, adding: "Trade for rally and retreat behaviour."
Traders were watching to see if Hurricane Dean had damaged bauxite and alumina production in Jamaica.
United Company RUSAL and U.S. aluminium major Alcoa both said they has temporarily curtailed production at their facilities on the island because of Hurricane Dean.
Shanghai November aluminium contract was down 0.3 percent at 19,190 yuan a tonne.
Tin was down $200 at $14,000 having surged more than 5 percent on Monday after the world's largest integrated tin miner, Indonesia's PT Timah Tbk, said it would halt spot sales of tin until prices moved back above $15,000.
