Copper extends rise on improving China demand; high stocks limit gains

Copper rose for a second straight session on Monday, supported by restocking demand ahead of top consumer China's week-long holiday, although rising stocks and a firmer dollar limited gains.

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading up 0.44% at 80,190 yuan ($11,272.46) per metric ton.

The benchmark three-month copper on the London Metal Exchange was at $9,991.5 a ton as of 0800 GMT, after climbing above the key psychological level of $10,000 a ton earlier in the session.

Downstream consumers in China continued restocking the red metal in the run-up to the National Day holiday from October 1 to October 8, supporting prices, according to analysts at broker Minmetals Futures.

Meanwhile, copper prices also found support from the lingering production suspension at Freeport Indonesia's Grasberg mine, one of the world's biggest copper mines, following an incident in early September.

However, rising stocks and a firm dollar remained headwinds, curbing prices' upside potential.

Copper stocks in the Shanghai warehouses <CU-STX-SGH> climbed by 12.5%.

A stronger dollar makes commodities traded in the greenback more expensive for investors using other currencies.

Among other SHFE base metals, tin closed the day adding 1.5% to trade at 272,510 yuan per ton. Tin inventory on the SHFE <SN-STX-SGH> slumped by 11.5% to a 12-week low as of September 19.

Also helping tin prices was tight raw material supply as production recovery in Wa State of Myanmar missed expectations, despite still weak demand for solder metal, analysts at broker Jinrui Futures said.

Among other base metals, SHFE aluminium dipped 0.26%,zinc, lead and Nickel were all little changed.

Among other LME metals, aluminium climbed 0.21%,nickel dipped 0.1%, lead held stable, tin advanced 0.78%, and zinc increased 0.83%.