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Copper dropped for a fourth straight trading session in London after stockpiles rose to their highest in more than six weeks, showing a supply shortage may be easing.

Stockpiles of the metal monitored by the London Metal Exchange jumped 2.9 percent, to 124,275 tons, the exchange said today in a daily report. That's the highest since Sept. 8. The gain will curb pressure on supplies of the metal used in wires, Michael Lewis, head of commodities research in London at Deutsche Bank AG, Germany's largest bank, said in an interview.

``There's not much tightening in the copper market from now onwards,'' said Lewis, who has tracked commodities since 2003.

Copper for delivery in three months on the LME fell $20, or 0.3 percent, to $7,475 a ton as of 10:23 a.m. London time. The contract earlier rose as much as $25.50 to $7,520.50 a ton.

The shortage of copper may ease in the first quarter of next year, Lewis said, as an economic slowdown in the U.S. will curb demand. The U.S. is the world's second-largest copper consumer after China.

Production may exceed demand by 50,000 tons in 2007, from a deficit this year of 150,000 tons, according to Societe Generale. Users have turned to stocks to fill the production shortfall this year. Prices rose 89 percent in the past 12 months, and copper traded on May 11 at a record $8,800 a ton.

The premium between copper for immediate delivery over three-month prices narrowed to $8 yesterday, from more than $20 last week. An easing of the premium, known as a backwardation, usually indicates an easing of constraints on supply.

Nickel, used in stainless steel production, lost $600, or 1.9 percent, to $31,600 a ton on the LME. The metal has more than doubled in the past year. It traded at $32,625 on Oct. 20, the highest since at least 1987.

Nickel inventory tracked by the LME gained for a third straight day, increasing 510 tons, or 9.7 percent, to 5,748 tons. Stockpiles have gained 12 percent this month.

Metal bought and due to be shipped out from LME-registered warehouses accounted for more than a third of inventory.

Zinc rose $30 to $3,930 a ton and tin fell $50 to $10,150. Lead gained $3 to $1,535lme.