Industrial metals posted slight gains on Monday as stronger demand prospects boosted confidence, but last week's mixed U. S. payrolls data was seen as signaling a slow recovery and kept a cap on gains.

China's imports of unwrought copper and semi-finished copper products may drop for the second straight month in August following increased inventories from record imports in the first half.

Pay talks that could disrupt supplies are under scrutiny. Mine workers at BHP Billiton's Spence copper mine in Chile started formal pay negotiations on Monday. Spence is the first major copper mine to enter negotiations and may provide a signal for other forthcoming negotiations.

Anglo American Los Bronces copper mine in Chile is operating normally after a landslide hit its access road, killing a security guard and injuring 10 at a control checkpoint, a company spokesman said on Monday.

Tajikistan, Central Asia's largest aluminium producer, cut its output of the metal by 14 percent year-on-year in the first eight months of 2009, a source at the state-owned TALCO aluminium company said on Monday. Output for the period was
232,544 tonnes, the source said.

Industrial metals may witness further gains in today’s session supported by positive sentiments in the markets and as investors await the China’s trade numbers later this week. We recommend buying metals at dips.