* Copper drags down other metals * LME stocks continue to rise, highlights weak demand * Aluminium hits 5-year low of $1,478 per tonne (Adds fresh comment/details, changes dateline PVS SINGAPORE) By Anna Stablum LONDON, Dec 9 (Reuters) - Copper dropped more than 6 percent on Tuesday after the previous session's rally and lead shed 5.4 percent as concerns about sluggish demand for industrial metals and the depth of the global economic downturn persisted. "We are seeing a bit of profit-taking," said analyst Robin Bhar at Calyon. "Prices may well be trying to bottom out but I think there will be scope for more losses." Three-month copper on the London Metal Exchange fell 6.4 percent to a low of $3,102 a tonne in early trade compared with $3,315 at the close on Monday when it rose as much as 10.8 percent. By 1051 GMT it was trading at 3,121 per tonne. Prices of the metal used in power and construction have fallen more than 60 percent since a record high of $8,940 in July. Last week it hit $2,991, the lowest since May 2005. Lead fell 5.4 percent to a low of $956 a tonne, against $1,011 at the close on Monday. It was last at $965. Prices are down more than 60 percent this year. With the exception of lead and tin, stocks rose for all the other metals with LME copper stocks jumping 1,850 tonnes to 302,575 tonnes, its highest level since early 2004. "Copper is probably the only metal where producers are still making money ... I think more production cutbacks will start to come through if we fall below $3,000 - which we will," Calyon's Bhar said. Cutbacks by copper producers are mounting and in the past few days, miners and smelters including Freeport Copper and Gold, Nippon Mining Holdings Inc, Sumitomo Metal Mining Co Ltd and Anvil Mining Ltd , have cut or halted output. "Copper has the potential to fall another 10-20 percent and if that is the case the other metals will fall with it," said Bhar, referring to copper as a sentiment leader. Markets were unimpressed by details from China's Yunnan province about how its plan to build a 1-million-tone stockpile of metal would work. "What Yunnan is doing is not stimulating demand, all they are doing is taking metal off the market and stockpiling it," Bhar said, adding the measure would at best give metals prices a floor. Aluminium was at $1,485 a tonne from Monday's $1,521. In early trade it hit the lowest since Oct. 2003 at $1,478. Stocks in aluminium, which has come under pressure in recent weeks due to poor car sales data, soared 1,600 tonnes to 1.88 million tonnes -- its highest since late 1994. Nickel was last at $9,000 a tonne, down from the last bid on Monday at $9,300 and tin was at $11,550 a tonne from $11,650 in the previous session. Zinc fell $15 at $1,087 with LME stocks rising 6,275 tonnes to 216,875 tonnes -- its highest point since mid-2006. Swedish copper and zinc miner and smelter Boliden said it was cutting its zinc production at its Finnish and Norwegian smelters. The firm said in a statement it would cut production by 60,000 tonnes on an annual basis and temporarily lay off of around 50 employees. METAL PRICES BY 1100 GMT Metal Last Change Percent Move End 2007 Ytd Percent move LME Cu 3121.00 -194.00 -5.85 6670.00 -53.21 SHFE Cu* 24130.00 -1000.00 -3.98 56880.00 -57.58 LME Alum 1491.00 -30.00 -1.97 2403.00 -37.95 SHFE Alu* 10170.00 -410.00 -3.88 18180.00 -44.06 COMEX Cu** 147.80 0.00 +0.00 303.05 -51.23 LME Zinc 1087.00 -15.00 -1.36 2370.00 -54.14 SHFE Zinc* 9140.00 -80.00 -0.87 18950.00 -51.77 LME Nick 9000.00 -300.00 -3.22 26350.00 -65.84 LME Lead 962.00 -49.00 -4.85 2550.00 -62.27 LME Tin 11550.00 -100.00 -0.86 16400.00 -29.57 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Nick Trevethan in Singapore, editing by Sue Thomas)

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