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Copper edged lower as the market consolidated after posting gains yesterday and as traders reacted to news a potential strike at Xstrata's Altonorte smelter will be held off for 5 days amid requests for government mediation.

At 1.06 pm, LME copper for three-month delivery had edged down to 6,855.00 usd a tonne from 6,930.00 usd at the close yesterday.

Copper edged up yesterday amid concern over a potential strike at Chile's Altonorte smelter and on news Chinese copper imports rose 6 pct in November, bringing an end to the declining import trend seen since the start of the year.

The metal has come under slight pressure today, however, amid news Xstrata has requested Chilean government mediation in contract talks with unions at its Altonorte smelter, holding off a potential strike for 5 working days.

Further, UBS Investment Bank analyst Robin Bhar noted that while today's LME report showed copper stocks actually edged lower, reversing a recent rising trend, the number of cancelled warrants have fallen to a very low level.

Cancelled warrants represent warehouse stocks booked and due for delivery. According to Bhar, they have now fallen to just 1.6 pct of total LME copper stocks, suggesting the amount of metal due to leave the warehouses is pretty low 'as demand is currently slack because of seasonal considerations'.

'Copper prices still look likely to head lower unless the 7,000 usd a tonne level is regained,' said Bhar.

Elsewhere, LME tin for three month delivery edged down to 10,850.00 usd a tonne after touching a new contract high of 11,250.00 usd yesterday as traders eyed a crackdown by the Indonesian government on illegal tin mining.

LME lead for three month delivery was also lower, trading at 1,760.00 usd after it also touched a new contract high yesterday, of 1,775.00 usd, amid a continuing fall in LME stocks and a rise in cancelled warrants.

In other metals, three month LME zinc bucked the trend to edge up to 4,395.00 usd against 4,350.00 usd yesterday, while nickel fell to 33,700.00 usd against 34,000.00 usd and aluminium dipped to 2,795.00 usd against 2,800.00 usd.