Copper prices recouped some of last week's steep losses on Monday as risk sentiment improved while supply in China remained tight and the dollar slipped.
Three-month copper on the London Metal Exchange (LME) rose 0.6% to $13,853 a metric ton in official open-outcry trading, having lost 2.7% last week in its steepest weekly decline since March.
Global stock markets nudged up from six-month lows on Monday, but the mood was fragile.
"Copper is recovering as risk sentiment stabilises and tight physical supply in China returns to focus," said ING commodities strategist Ewa Manthey, adding that the rise in spot premiums shows that metal remains difficult to secure.
The Yangshan copper premium , which reflects demand for copper imported into top metals consumer China, rose to a record $230 a ton on Monday.
The most traded copper contract on the Shanghai Futures Exchange (SHFE) gained 0.5% to 107,430 yuan ($16,096.31) a ton.
Also supporting copper was a weaker dollar, which makes dollar-priced commodities cheaper for buyers using other currencies.
TEMPORARY GAINS?
Monday's gains in copper could be temporary, however.
"Today’s move does not necessarily mark the end of the correction," ING's Manthey said. "Prices remain vulnerable to further weakness if broader market sentiment deteriorates again."
A sweep by Democrats in US midterm elections spurred worries over the potential for tighter US data centre restrictions and reduced prospects for Trump's planned tariffs on refined copper, threatening the AI-related demand and tariff-driven stockpiling that have supported prices.
LME aluminium shed 0.1% in official activity to $3,059 a ton.
"While low visible inventories and elevated geopolitical risks should continue to provide downside support in the near-term, the outlook for next year remains challenged by Indonesian-led supply growth and a muted demand environment," Citi said in a note on Monday.
Among other metals, zinc rose 0.3% to $3,722 a ton, lead edged up 0.1% to $1,888 and nickel added 0.3% to $16,395 while tin fell 0.6% to $46,195.
