SINGAPORE, Dec 7 （Reuters） - Shanghai copper is expected to open firm on Tuesday, potentially extending a six session rally in London which is less than $200 away from a record high, underpinned by tight supply and expectations of Chinese buying for early 2011.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange closed around half a percent higher on Monday at $8,770 a tonne, just under $200 short of the record $8,966 reached on Nov. 11.
* When Shanghai closed the previous session, LME copper stood at $8,762
* Analysts are looking for Chinese consumers to step up their purchases in the coming weeks to secure delivery before the Lunar New Year in February.
* Chinese demand for physical material may help keep the cash to three months spread in backwardation and tighten market conditions, already contending with a dominant physical position holding between 50 and 80 percent of the available stock.
* Cash copper traded at $46.50 above the three month prices, in slightly from levels around $60 struck Monday.
MARKET NEWS
* The euro was under pressure on Tuesday, having fallen to a record low against the Australian dollar, as the euro zone appeared split on how to tackle the region's debt crisis.
* Euro-zone finance ministers met on Monday amid pressure to increase the size of a 750-billion-euro （$1 trillion） safety net for debt-stricken members in hopes of halting potential contagion to other countries.
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