LONDON: Copper led metals higher on Monday on expectations of improving appetite from top consumer China and higher demand from the US market as the dollar pared recent gains.
Benchmark copper on the London Metals Exchange was bid up at $5,550 per tonne after failing to trade in official rings.
The metal used in construction and power last week recorded its first weekly fall in three when it dropped 2.3 percent.
Chinese investors whose rush into copper hauled it to 17-month highs this month say infrastructure spending and government reforms will keep the metal well supported for the rest of this year and into 2017.
Copper prices have lagged the rest of the metals complex this year despite market data showing a deficit and an uptick in demand from China, analysts said, but the price was now beginning to catch up with the fundamentals.
"The usage of copper has been better globally this year. So far as the latest data is available there hasn't been a big supply surplus," said Quantitative Commodity Research consultant Peter Fertig.
"All in all the outlook for copper demand has improved and that is justifying that prices are also coming up."
The dollar index fell 0.3 percent against a basket of major currencies after hitting its highest levels in almost 14 years on Friday. A weaker dollar boosts the buying power of those paying for commodities with other currencies.
A recent rise in metals has been tied to expectations of higher demand from the United States after Donald Trump's surprise win in the presidential election. Trump has vowed to ramp up infrastructure spending.
Marex Spectron said in a note that bullish sentiment from China and the United States permeated the London markets.
Investors raised their net-long position in COMEX copper futures and options in the week to Nov. 15 to a record for the second straight week, US Commodity Futures Trading Commission data showed on Friday.
Elsewhere on the LME, nickel was bid up 3.2 percent to $11,200 a tonne, while zinc was traded 1.6 percent higher in official rings at $2,577 per tonne. Lead was bid up 2 percent to $2,181.50.
Aluminium rose 1.2 percent to $1,714 and tin added 3.8 percent at $20,975, both trading in official rings.
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