METALS-Copper loses more momentum with China absent for Lunar New Year

(Updates with official prices)

LONDON, Jan 25 (Reuters) - Copper prices edged lower for a second day on Wednesday, weighed down by weak demand due to the absence of China, the biggest consumer, where markets are closed for a week-long Lunar New Year holiday.

Copper rallied more than 10% in early January, reaching a seven-month high of $9,550.50 a tonne on Jan. 18, as the dollar weakened and speculators bet that the end of China's COVID-19 restrictions would boost economic growth and metals demand.

But prices lost momentum as Chinese markets closed on Jan. 20.

The yuan, which strengthened nearly 10% against the dollar between November and mid-January, making dollar-priced metals more affordable for Chinese buyers, weakened in the days before the holiday began.

While Chinese demand should rise in the coming months, supporting prices, it could remain weak for some time after the New Year period, said Ian Roper, an analyst at Astris Advisory Japan.

This could lead to large increases in metal inventories in China and raise the risk of a drop in prices in the short term, he said on a webinar organised by brokers Marex.

"I do worry that things have overshot ... the key really is going to be how quickly Chinese activity levels pick up after the new year," he said.

Benchmark three-month copper on the London Metal Exchange (LME) was down 0.3% at $9,287 a tonne in official open-outcry trading.

Prices of the metal used in electrical wiring have barely changed since Jan. 19 but are still up around 11% this month.

In other metals, LME aluminium fell 0.5% to $2,637.50 a tonne, nickel was up 0.8% at $29,000, lead rose 0.9% to $2,145 and zinc slipped 0.3% to $3,420.

Tin was 1.3% higher at $30,340 after reaching $30,600, its highest since June. Prices of the metal used in solder have risen more than 20% this month.

For the top stories in metals and other news, click or (Reporting by Swati Verma and Peter Hobson, additional reporting by Neha Arora, editing by Sharon Singleton, Kirsten Donovan)