May 15 (Reuters) - Copper eased on Friday, even as it

looked set to log a second straight weekly gain, as investors

weighed persistent supply risks against signs that high prices

are starting to curb demand in top consumer China.

On Friday, the benchmark three-month copper on the

London Metal Exchange was down 0.99% at $13,800 a metric ton as

of 0305 GMT, while the most-active copper contract on

the Shanghai Futures Exchange tumbled 1.45% to 106,060 yuan

($15,605.78) a ton.

The London contract was up 1.23% so far this week, while

SHFE copper rose 2.35%.

The week saw both the London and Shanghai exchangeshit their

highest levels in more than three months, as funds bought into

concerns over mine supply and processing constraints.

But the rally began to lose momentum on Thursday, as traders

locked in profits and signs emerged that elevated prices were

weighing on physical consumption in China.

Downstream demand has softened as elevated copper prices

curbed new orders, analysts at Chinese broker Jinrui Futures

said.

SHFE copper stocks are showing signs of accumulating.

On-warrant copper stocks have started to rise

since Tuesday, ending their prolonged decline since mid-March,

totalling 97,011 tons on Thursday, up from 88,077 tons on

Monday.

Spot market indicators were also softer. The premium paid by

Chinese copper buyers over SHFE prices has flipped

into a discount, a sign that buyers are reluctant to chase

prices higher.

Meanwhile, rising oil prices, a stronger U.S. dollar and

expectations that the Federal Reserve may keep interest rates

unchanged for longer due to sticky inflation remained key

sources of pressure for copper and the broader industrial metals

market.

Base metals are tracing copper to move lower.

Among other metals on the LME, aluminium and lead

declined 0.74%, zinc eased 0.67%, nickel

slid 0.79% and tin dropped 0.43%.

Elsewhere on SHFE, aluminium lost 1.09%, zinc

dipped 0.16%, lead dropped 0.54%, nickel

tumbled 1.72% and tin slid 2.05%.

Friday, May 15

DATA/EVENTS (GMT)

1000 EU Reserve Assets Total Apr

1315 US Industrial Production MM Apr

($1 = 6.7962 Chinese yuan renminbi)