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SINGAPORE, Apr 26 (Reuters) Copper and zinc edged down in thin trade on Wednesday, a day after copper soared more than 6 percent to above $7,200 a tonne for the first time and zinc gained 3.7 percent to a record high on fund buying and supply concerns.

By 0341 GMT, London Metal Exchange copper for delivery in three months was down $21 at $7,199/$7,239 a tonne. In late Tuesday London trade, copper hit a record $7,240.

''The market is genuinely tightening,'' said Peter Richardson, chief metals economist at Deutsche Bank. ''That's being reflected in the renewed spread on the cash to three months.'' On Tuesday, copper prices rose $431 to end at $7,220 on concerns over supply disruptions and relentless fund buying. The premium for cash over three months widened to $135/$145 a tonne from $77 on April 20.

Inventories in LME warehouses were 117,450 tonnes on Tuesday, equivalent to about 2-{ days of global consumption. Stocks have fallen from almost 1 million tonnes in April 2002.

LME dealers in Hong Kong and Tokyo said volume was very thin as spreads were too wide and volatility was too high to trade.

Prices for copper, used in wiring, tubing and coins, have risen 65 percent this year and were up more than five-fold from cyclical lows in 2001 on strong demand and tight supply after years of under-investment in new mining projects.

World number-one miner BHP Billiton Ltd./Plc. said difficulties finding personnel and mine equipment as global demand for mineral commodities soars was causing supply-side constraints across the sector.

Sentiment was also supported by industrial unrest at operations in Mexico, Chile and Canada.

Miner Grupo Mexico wants union members to be arrested in a bid to end a crippling strike, but said on Tuesday it did not favor breaking picket lines after two people were killed in a failed strike eviction in Mexico last week.

Shanghai copper futures jumped to a record high, hitting their daily upper trading limit on Wednesday, tracking LME gains the previous day.

The most active Shanghai contract, July, rose 4 percent from the previous settlement to 66,400 yuan ($8,279) a tonne. It was up 2,130 yuan from the previous close. The May contract reached a record 66,660 yuan.

''No one wants to sell now,'' said Shen Haihua, vice president of Maike Futures in Shanghai, adding people were also reluctant to take fresh positions ahead of China's week-long May Day holiday next week.

LME aluminium was at $2,791/$2,799 a tonne versus the London close of $2,795, near Monday's 17-1/2-year peak of $2,800, while Shanghai's July aluminium contract closed the morning session up 250 yuan at 21,840 yuan a tonne.

In other LME metals, zinc was at $3,360/$3,390 a tonne after gaining $120 to end at a record high of $3,385 on Tuesday.

Zinc, used as an anti-corrosive coating in galvanised steel production, has been a stellar performer in the base metals complex this year, gaining as much as 78 percent on tight concentrates supply and growing demand from the steel sector.

BHP Billiton on Wednesday said output of silver, lead and zinc from its Cannington mine in Australia would temporarily decline due to repairs at the site.

Peru's Antamina, one of the world's biggest copper and zinc producers, will produce around 10 percent less zinc in 2006 compared with last year, its President and Chief Executive Gerald Wolfe said on Tuesday.

After Tuesday's London market close, nickel set a record high of $20,100 a tonne on the Select electronic trading system.

Metal Prices by 0341 GMT LME ($/tonne), SFE (yuan/tonne) and COMEX (US cents/lb) Metal Last Net Change Pct Move LME Cu 7199.00 -21.00 -0.29 SHFE Cu* 66400.00 2130.00 +3.31 LME Alum 2791.00 -4.00 -0.14 SHFE Alu* 21840.00 250.00 +1.16 COMEX Cu** 340.80 0.00 +0.00 LME Zinc 3360.00 -25.00 -0.74 LME Nickel 19900.00 -100.00 -0.50 LME Lead 1205.00 -5.00 -0.41 LME Tin 9350.00 -100.00 -1.06 Change so far in 2006 Metal Latest bid End prev year Pct Move LME Cu 7199.00 4395.00 +63.80 SHFE Cu* 66400.00 41720.00 +59.16 LME Alum 2791.00 2276.00 +22.63 SHFE Alu* 21840.00 19360.00 +12.81 COMEX Cu** 340.80 204.20 +66.90 LME Zinc 3360.00 1905.00 +76.38 LME Nickel 19900.00 13500.00 +47.41 LME Lead 1205.00 1051.00 +14.65 LME Tin 9350.00 6475.00 +44.40 * 3rd contract months for SHFE copper and aluminium.

** 1st contract month for COMEX copper.

($1=8.03 yuan) REUTERS CS KN1102