London copper drifts lower as China holiday begins

SINGAPORE, Oct 1 (Reuters) Base metals edged lower in Asian trading hours on the London Metal Exchange after copper hit a 10-week high on Friday.

Trading was low-key with just 11 lots of copper and two lots of aluminium changing hands in electronic dealing.

Shanghai markets will be closed all week for National Day holidays.

Copper was down at ,010 a tonne at 0128 GMT and aluminium eased to SINGAPORE, Oct 1 (Reuters) Base metals edged lower in Asian trading hours on the London Metal Exchange after copper hit a 10-week high on Friday.

Trading was low-key with just 11 lots of copper and two lots of aluminium changing hands in electronic dealing.

Shanghai markets will be closed all week for National Day holidays.

Copper was down $20 at $8,010 a tonne at 0128 GMT and aluminium eased $11 to $2,509. Copper touched $8,155 on Friday and could challenge the May 2006 record high of $8,800.

Dealers said the absence of Chinese players, threats to supply and next week's industry gathering in London for the annual LME dinner could make for volatile trading towards the end of the week.

Miners at Southern Copper in Peru plan to strike from Tuesday and that could be followed by a nationwide walkout in November after Peru's biggest federation of mineworkers unions said on Friday it has agreed to call a strike.

A nationwide strike in May was halted after the government promised to alter labour rules in the sector. But the changes have not been made, union leaders have said. [nN28209065] Other metals were untraded, with prices indicated mostly lower.

Metal Prices by 0128 GMT: Metal Last Change Pct Move End 2006 Pct chg 07 LME Cu 8010.00 -20.00 -0.25 6330.00 26.54 LME Alum 2509.00 -11.00 -0.44 2805.00 -10.55 COMEX Cu** 363.05 0.00 +0.00 287.10 26.45 LME Zinc 3030.00 -20.00 -0.66 4230.00 -28.37 LME Nickel 30450.00 50.00 +0.16 33325.00 -8.63 LME Lead 3390.00 -20.00 -0.59 1670.00 102.99 ** 1st contract month for COMEX copper Reuters MP VP0720 ,509. Copper touched ,155 on Friday and could challenge the May 2006 record high of ,800.

Dealers said the absence of Chinese players, threats to supply and next week's industry gathering in London for the annual LME dinner could make for volatile trading towards the end of the week.

Miners at Southern Copper in Peru plan to strike from Tuesday and that could be followed by a nationwide walkout in November after Peru's biggest federation of mineworkers unions said on Friday it has agreed to call a strike.

A nationwide strike in May was halted after the government promised to alter labour rules in the sector. But the changes have not been made, union leaders have said. [nN28209065] Other metals were untraded, with prices indicated mostly lower.

Metal Prices by 0128 GMT: Metal Last Change Pct Move End 2006 Pct chg 07 LME Cu 8010.00 -20.00 -0.25 6330.00 26.54 LME Alum 2509.00 -11.00 -0.44 2805.00 -10.55 COMEX Cu** 363.05 0.00 +0.00 287.10 26.45 LME Zinc 3030.00 -20.00 -0.66 4230.00 -28.37 LME Nickel 30450.00 50.00 +0.16 33325.00 -8.63 LME Lead 3390.00 -20.00 -0.59 1670.00 102.99 ** 1st contract month for COMEX copper Reuters MP VP0720