* Rose overnight on copper-intensive China rail plan
* Holds on to advances (Updates prices)
By James Regan
SYDNEY, Jan 5 (Reuters) - London copper recouped earlier losses on Thursday to build on a price surge overnight, aided by a brightening outlook for Chinese metals demand.
Three-month copper on the London Metal Exchange was up 0.4 percent at $5,668 a tonne at 0700 GMT. The contract posted a 2.6 percent rise overnight after China unveiled a metals-intensive railway construction plan that would require massive amounts of copper wiring.
The most-traded copper contract on the Shanghai Futures Exchange gained 0.88 percent to 45,760 yuan ($6,607) a tonne.
Traders said news that Zambian workers had downed tools at a mine and copper processing plant belonging to Konkola Copper Mines over wage talks, was insufficient to raise concerns over supply.
But if workers at the BHP Billiton-owned Escondida copper mine in Chile - the world’s biggest - decide to strike in February over collective contract talks, copper could get a price boost.
Labour talks at Escondida are seen as a benchmark for the copper industry at large.
“At Escondida alone, over 1.1 million tonnes is at risk should negotiators fail to reach agreement on a new long-term labour contract,” Barclays analyst Dane Davis said in a note.
Elsewhere in metals, ShFE aluminium was down 0.4 percent at 12,570 yuan, while ShFE zinc and ShFE lead were each around 2 percent higher.
LME aluminium was trading 0.07 percent higher at $1,697 a tonne. Zinc was 0.19 percent firmer at $2,626 a tonne, while nickel was 0.9 percent higher $10,300 a tonne.
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
Most active ShFE nickel
Three month LME tin
Most active ShFE tin ($1 = 6.9256 Chinese yuan) (Reporting by James Regan; Editing by Kenneth Maxwell and Sunil Nair)