LONDON: Copper prices rose on Monday on concerns that supply will be tight after a court ruling cast doubt on the future of a smelter in India and a large mine in Indonesia said its export permit had expired.
Better than expected Chinese lending data on Friday, meanwhile, suggested that demand from the world's biggest consumer of metals will remain strong.
Benchmark copper on the London Metal Exchange (LME) did not trade but was bid up 0.8 percent at $6,235 a tonne in official rings, near a two-month high of $6,289.50 reached on Feb. 7.
Copper stockpiles available to the market in LME-registered warehouses are near 13-year lows and LME time spreads have tightened rapidly, suggesting a shortage of nearby metal.
But there is little sign of a serious supply shortfall, Deutsche Bank analyst Nick Snowdon said, adding that the outlook for US-China trade negotiations and global economic growth remained the most important driver of copper prices.
Copper fell to a 1-1/2 year low of $5,725 in January.
VEDANTA: India's Supreme Court set aside an order by an environmental court that had cleared the way for the reopening of Vedanta's southern Indian copper smelter.
GRASBERG: PT Freeport Indonesia, which operates the Grasberg mine, one of the world's largest, said its copper concentrate export permit expired on Feb. 15 and it had not received recommendations from the mining ministry that will help it to obtain a new permit.
TRADE WAR: The United States and China will resume trade talks next week in Washington, but US President Donald Trump repeated on Friday that he may extend a March 1 deadline for a deal.
TARIFFS: The US Commerce Department sent a report on Sunday to President Trump that could unleash steep tariffs on imported cars and auto parts.
COPPER POSITIONING: Speculative investors are betting on lower LME copper prices, with a small net short as of last Thursday, according to brokers Marex Spectron.
COPPER SPREAD: Cash copper has flipped to a $35 premium against the three-month contract from a $15 discount a week ago, suggesting a shortfall of nearby supply.
LME STOCKS: On-warrant copper stocks in LME warehouses at 73,850 tonnes are down from about 130,000 tones in January.
One entity holds between 50 and 79 percent of warrants.
SHFE STOCKS: Copper stockpiles in Shanghai Futures Exchange warehouses, meanwhile, have doubled in recent weeks to more than 200,000 tonnes.
METALS PRICES: LME aluminium was bid down 0.4 percent to $1,852 a tonne, zinc was bid 1 percent lower at $2,627, nickel was bid up 0.1 percent to $12,410, lead was bid down 1.8 percent at $2,041 and tin was bid down 0.4 percent at $21,125.
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