(Updates with official prices)
LONDON, Feb 11 (Reuters) - Copper took a breather on Thursday as Chinese markets closed for the week-long Lunar New Year holiday after four days of rapid gains that lifted prices to their highest in eight years, with analysts expecting tight supplies to push the rally further.
The start of the Chinese holiday kept trading activity low, and benchmark copper on the London Metal Exchange (LME) was down 0.1% at $8,289.50 a tonne in official trading after reaching $8,327.50 Wednesday, its highest since February 2013.
Many analysts forecast a multi-year bull run as demand outpaces supply, though Gianclaudio Torlizzi, a partner at consultant T-Commodity, said the market may be getting ahead of itself.
“The more the price moves up in the very short term the bigger the fall will be in the second half of this year,” he said. “The $7,000 level will be retested. If it goes to $9,000, that will be a good opportunity to short.”
Inventories in Shanghai Futures Exchange warehouses fell in January to their lowest since 2011 before rising slightly to 78,571 tonnes. CU-STX-SGH
SPREAD: Cash copper has flipped to a premium against the three-month contract, pointing to tight supply of nearby metal. The premium hit $17.50 a tonne this week before slipping to $3.50. CMCU0-3
CHILE SUPPLY: Rough seas and a shortage of containers have bogged down shipments of copper cathodes from Chile, the world’s largest producer, and could continue to slow exports.
MARKETS/DOLLAR: Global shares rose for a ninth day while the dollar ended a run of weakness that had helped metals by making them cheaper for non-U.S. buyers.
Benchmark tin was flat at $23,317 a tonne, near 7-1/2 year highs.
OTHER METALS: LME aluminium was up 0.1% at $2,080.50 a tonne, zinc rose 0.8% to $2,746.50, nickel fell 0.1% to $18,651 and lead was 0.2% down at $2,091.50.
Reporting by Peter Hobson Additional reporting by Mai Nguyen Editing by David Goodman and Bernadette Baum