Industrial metals pared earlier losses on Monday after data showed the U. S. services sector expanded in September following 11 straight months of contraction. The weakness in the U. S. dollar further supported the prices. U. S. copper and Zinc futures reversed earlier losses and moved into positive territory.

Kazakh copper producer Kazakhmys may reduce copper output by up to 9.6 percent this year, a regional official told a government meeting on Monday.

Australia's BHP Billiton owns the Spence solvent-extraction electro-winning operation, which is located in northern Chile and has a mine life of 19 years. Workers are likely to scrap a new wage offer and strike this week, a union leader said on Monday, in talks seen as an indicator for upcoming labor negotiations in the world's top copper producer, Chile.

Chinese-owned miner Minerals and Metals Group (MMG) has shut down a pipeline that transports zinc concentrate from its Australian Century mine to a port following a spill, it said on Monday.

Money managers held a net short position of nearly 4,000 copper futures contracts in the week ending Sept. 29, from a net long of 247 contracts the previous week.

Industrial metals may trade weak today after posting some gains last day. The fundamentals remain weak demand concerns still persist in this complex. However, the fall in dollar may cap the downside. We recommend selling copper on rise.