* Copper rises a second day on LME, down 0.2 pct in Shanghai * Production halted at Freeport's Grasberg copper, gold mine * Euro zone debt crisis remains a worry - analyst * Coming Up: U.S. industrial output at 1315 GMT (Updates prices, adds quotes and details) By Carrie Ho SHANGHAI, Oct 17 (Reuters) - Copper rose for a second straight day in London as a worsening strike disrupted production at Grasberg, the world's second-biggest copper mine, offsetting concerns that the euro zone crisis may drag on and cause a demand slump. Freeport McMoRan Copper & Gold Inc halted copper and gold production on Monday at its giant Grasberg mine in Indonesia because of security fears and worker blockades, in the worst supply disruption since a strike began a month ago. "If such supply-side problems deteriorate much further, they can provide some support to prices," said Ong Yiling, an analyst at Phillip Futures in Singapore. Three-month copper on the London Metal Exchange gained 0.9 percent to $7,611 a tonne by 0738 GMT, after climbing 3.2 percent in the previous session. It has risen nearly 8 percent in the last two weeks. The most-active December copper contract on the Shanghai Futures Exchange SCFc3 lost 0.2 percent to close at 55,900 yuan ($8,763.82) per tonne, after rising 2.1 percent in the previous session. Meanwhile, the global aluminium industry remained sluggish as global miner Rio Tinto signalled a major retreat from its aluminium business on Monday, putting an estimated $8 billion worth of assets up for sale across six countries, only four years after buying aluminium giant Alcan for $38 billion. "The aluminum industry has been suffering because of over-capacity coming from China," said Henry Liu, associate director of Mirae Asset Securities in Hong Kong. "This has led to very thin margins. It's very difficult to compete with Chinese producers." FINANCIAL TURMOIL In Europe, leaders are facing growing pressures to contain the euro zone debt problems as the world's leading economies pressed them on Saturday to act decisively to resolve the crisis by Oct. 23. Signalling that euro zone governments are doing their best, German Finance Minister Wolfgang Schaeuble said on Sunday that the region's governments are trying to persuade banks to accept a larger write down on Greece's debt crisis. "The euro zone crisis remains the major worry. Even if leaders there come up with a plan to resolve the debt crisis, it will involve some sacrifice of banks there,which will have some negative impact on the markets at least in the short term," said Jinrui Futures analyst Zhao Kai. Base metals prices at 0738 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7611.00 66.00 +0.87 -20.72 SHFE CU FUT DEC1 55900 -110 -0.20 -22.20 LME Alum 2254.75 34.75 +1.57 -8.71 SHFE AL FUT DEC1 16630 -65 -0.39 -1.25 HG COPPER DEC1 344.00 3.20 +0.92 -22.51 LME Zinc 1949.50 19.50 +1.01 -20.56 SHFE ZN FUT DEC1 15260 -35 -0.23 -21.64 LME Nickel 19049.00 174.00 +0.92 -23.03 LME Lead 2040.00 14.00 +0.69 -20.00 SHFE PB FUT 15040 -45 -0.30 -18.04 LME Tin 22250.00 450.00 +2.06 -17.29 LME/Shanghai arb 828 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month ($1 = 6.379 Chinese Yuan) (Reporting by Carrie Ho; Editing by Jacqueline Wong)

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