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Copper futures in New York opened with modest gains on Tuesday on some light covering and bargain buying, but dealers cautioned the market could be hard-pressed to extend the gains given the heavy sell-off on Monday.

"I think in the next few days, you had better be careful if you're long because if we start holding below $3.40 a lb, it could do some damage to the chart," said one COMEX trader.

"On the decline, there is some interest in just buying it on the bounce, but beyond that, I would be very cautious ... just because of the wash-out we saw yesterday in the other metals," he added.

By 10:24 a.m. (1424 GMT), copper for December delivery edged up 1.75 cents a lb at $3.4350 on the New York Mercantile Exchange's COMEX division. Trading ranged from an early low of $3.3960 to $3.4550.

Floor dealers continued to place first support in December copper at the $3.40 level, and then at the Aug. 31 low at $3.32.

Spot September rose 2.60 cents to $3.46 a lb, just off its morning peak at $3.4650.

COMEX copper volume at 10 a.m. was estimated at a modest 3,000 lots.

Following the widespread liquidation in energy, metals, and agricultural commodities on Monday, markets stabilized in early trade on Tuesday, but some analysts believed prices still had the potential to work lower.

"A relatively steadier energy complex is helping the mood somewhat, but markets still seem nervous, and we think we could see a little more selling emerge after another day or so of sideways actions," said Edward Meir, metals analyst with Man Financial.

However, labor disputes and the possibility of further supply disruptions due to upcoming contract renewals at major mines should support the market at a time of critically tight supplies.

On Monday, Chile's Codelco, the world's largest copper company, reached a new, four-year wage deal with the supervisors union at its El Salvador division.

The successful deal, reached ahead of the Oct. 31 date for the contract to expire, is a positive start for state-owned Codelco, which faces much tougher negotiations at its two largest divisions, at Andina and Chuquicamata, Codelco Norte.

Meanwhile, China's imports of copper, including refined and semi-finished products, fell 23.7 percent from a year earlier to 1,340,839 tonnes in the first eight months of this year, preliminary customs data showed on Tuesday.

Looking at supplies, London Metal Exchange-monitored warehouse stocks fell 1,675 tonnes to 119,850 tonnes on Tuesday -- less than three days' worth of global consumption. COMEX inventories rose 1,372 short tons to 13,330 tons in Monday's report.

LME copper for three-month delivery last traded at $7,565 a tonne, up $85 from Monday's kerb close