LONDON: Copper prices touched their highest in four weeks on Tuesday as speculators kept buying in response to expectations of potential shortages in China.
Nickel slipped on the back of losses in steel.
China announced plans in July and August to curb waste imports, including scrap metal, but it was unclear how severe the restrictions would be on copper.
"I think copper's pricing in expectations of the Chinese restrictions on scrap imports, but to me the price looks a little high based on current fundamentals," Colin Hamilton, director of commodities research at BMO Capital Markets, said.
Benchmark copper on the London Metal Exchange was up 0.5 percent at $6,695.50 a tonne at 1421 GMT after touching $6,735, the highest since Sept. 12.
CONGO: Helping to lift copper was news that Congo's mines minister has ordered a joint venture of Chinese investors to stop exporting raw copper and cobalt before processing because of their low value on international markets.
FERROUS: Steel-linked metals zinc and nickel were pressured after Shanghai rebar steel futures slid nearly 5 percent while steelmaking raw materials extended losses on worries over plentiful supply.
NICKEL: Three-month LME nickel, largely used to make stainless steel, shed 1.1 percent to $10,890 a tonne.
ZINC: Mainly used in galvanising steel to make it rust resistant, zinc initially dipped in line with weaker Chinese steel, but recovered to $3,251 a tonne, a gain of 0.6 percent. It is one of the top LME performers this year, rallying 25 percent on worries of shortages due to mine closures and an environmental crackdown in China.
ZINC SUPPLY: Vedanta Resources boosted mined metal production at its Indian zinc unit by 42 percent in the first half of the year, highlighting the potential of more supply coming on the market.
ZINC SPREADS: Zinc was resilient partly because the premium of the cash contract over the three-month one touched a new high of $68 a tonne, the strongest since 2007, indicating short-term shortages.
DOMINANT POSITION: Zinc prices have also been bolstered by the large position held by one party, which controls 50-80 percent of available LME zinc inventories, according to LME data.
ALUMINIUM: Aluminium traded down 0.6 percent at $2,161 as investors feared pollution-linked shutdowns in China would be offset by new capacity.
"SMM (Shanghai Metals Market) reports that new China policy is giving the green light to some companies to build capacity in other provinces," Alastair Munro at broker Marex Spectron said in a note.
PRICES: Lead edged up 0.02 percent to $2,512.50 and tin rose 0.4 percent firmer at $20,850.
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