METALS-Copper softens on low volumes as investors watch LME week
* Industry event LME Week begins in London
* Goldman Sachs: ex-Chinese demand fell 4 pct in 2 yrs
* China markets to reopen Tuesday after week-long break
* Tin drifts down after 5.5 pct rally on Friday
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LONDON, Oct 7 (Reuters) - London copper eased on Monday on low volumes as investors paused to monitor developments at the LME Week industry event, while top consumer China was absent for the last day of its week-long break.
Benchmark copper dropped 0.8 percent on the London Metal Exchange (LME) to $7,203 a tonne by 0926 GMT, after gains of 1 percent in the previous session.
"Investors usually like to remain cautious and just wait for any decisions coming out of London," said Myrto Sokou, commodity analyst at Sucden, highlighting the industry dinner on Tuesday evening.
Liquidity will receive a boost when the Shanghai Futures Exchange reopens on Tuesday.
Copper prices are down more than 9 percent this year, which Goldman Sachs attributed mainly to a demand drop of 3.9 percent from a slowing European economy.
"Though much weight has been placed on the (moderate) slowdown in Chinese economic growth over the past two years, the key reason for base metals' price weakness has been ex-Chinese metals demand," it said in a note.
Investors are also keeping a close eye on the U.S. government shutdown, now in its second week, and the long-running debate of LME warehousing issues.
LME Week opened on Monday and the recent proposal of the London exchange to reform its controversial warehousing system will be one of the main topics of discussion among industry players attending the event.
The LME has proposed that as of next April, a warehouse company with wait times of more than 100 days in a single location must load out more metal than it loads in.
In other metals, tin gave back 2.1 percent to trade at $23,500 a tonne, having on Friday soared 5.5 percent to a seven-month high of $24,000, boosted by supply worries from top exporter Indonesia.
Shipments by Indonesia's biggest tin exporter have been curtailed after new rules on domestic trading in August, forcing refined tin shipments to their lowest since early 2007.
Benchmark aluminium eased 0.3 percent to $1,841 a tonne, zinc fell 0.4 percent at $1,866, while lead gained 0.2 percent at $2,050.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin
(Additional reporting by Melanie Burton in Singapore and Eric Onstad in London; editing by Keiron Henderson)