Three-month copper was last quoted US$2 lower at $1,406-$1,412 a tonne. Record high LME copper inventories of 703,550 tonnes and a consistent inward flow of new metal from Chile has suggested to investors that declining demand is no longer restricted to Asia, the dealers said.

"The market's starting to look a lot weaker in North America and Europe," one said.

The Broken Hill Pty Co Ltd, the world's second largest copper company, did little to buoy market sentiment on Friday when it revealed it planned to sell nearly 25 per cent of the 125,000-tonnes-a-year of copper produced at its Escondida oxide project in the spot market.

Some longs in the market are hoping for a rash of mine and smelter cutbacks in the United States, where the cost of producing copper is among the highest in the world.

Again, the focus is on BHP, which some observers said was ripe for further drawdowns in North America. For its part, BHP has declined comment, other than to say it, like its competitors, is studying options.

Aluminium was also smarting in the aftermath of a far-reaching institutional sell-off on Friday showing further signs of deterioration.

Three-month aluminium was last quoted down $1 at $1,158-$1,162 a tonne. Meanwhile, LME dealer Rudolf Wolff said it expects to see further weakness to bring tests of support at $1,150 a tonne.

"As such, Wolff favour selling strength towards the $1,200 level, with stops there above," it said. "Should $1,150 fail to hold, support is envisaged at$1,120-$1,130," it said.

Three-month zinc was quoted $1 lower at $1,048-$1,052 a tonne, which is near last week's low of $1,043.

Dealers said an accident at Pasminco Ltd's Eluramine last week, in which a worker was killed andproduction suspended for a week, had done little to underpin the zinc price. Production from the mine resumed on Sunday.

Demand remains slack with premium's softening and metal on offer, although technical and speculative buying is helping the price, LME broker ScotiaMocatta (Australia) Pty Ltd said in a report.

Three-month nickel was quoted $15 lower at $4,970-44,990 a tonne. Three-month lead was down $2 at $506-$508 a tonne.