Base metals has closed lower on the London Metal Exchange (LME), losing ground in line with broader financial markets as enthusiasm for Greece's election faded and focus shifted to Spain's rising borrowing costs.

At the PM kerb close on Monday, LME three-month copper was 0.01 per cent lower at $US7,509.50 a metric ton.

Risk-related assets such as equities and base metal started Monday on a strong footing following the victory of the pro-bailout New Democracy party in the Greek election Sunday.

However, initial enthusiasm soon petered out as doubts resurfaced over the formation of a strong Greek government able to help the euro zone through its crisis.

Spain's borrowing costs also rose to euro-era highs on Monday. Selling of Spain's 10-year bond pushed its yield above seven per cent, the level at which Greece, Portugal and Ireland started to lose market access.

The ratio of past-due loans held by Spanish banks rose to an 18-year high, further evidence of debt problems in the country.

"The mini-euphoria related to Greece wore off and reality (soaring Spanish bond yields) set in once again in the EU," said Kitco Metals analyst Jon Nadler.

Markets have plenty of fresh macro events to digest in the days ahead.

Monday saw the start of a summit of Group of 20 (G20) leaders in Mexico, and Tuesday marks the beginning of the US Federal Reserve's two-day rate-setting meeting.

Base metals' wide use in industry makes them sensitive to broader economic sentiment.

Lead lost the most ground of the base metal complex Monday, closing 1.4 per cent lower on the day at $US1,895.50/ton. On a technical basis, the metal looks likely to consolidate around the $US1,900/ton area, with $US1,877/ton holding as a key support level, said Sucden Financial.

However, a break below this could spark further declines toward $US1,772/ton-$US1,814/ton, it added.

Prices in dollar a metric ton.

3 Months Metal Bid-Ask Change from

Friday PM kerb

Copper 7509.5-7510.0 Dn 0.5

Lead 1895.5-1896.0 Dn 27.5

Zinc 1879.0-1880.0 Dn 24

Aluminum 1928.0-1929.0 Dn 5

Nickel 16650.0-16655.0 Dn 195

Tin 19475.0-19525.0 Dn 225

Aluminum Alloy 1840.0-1860.0 No change

Aluminum Alloy-NASAAC 1925.0-1950.0 No change