- Benchmark copper on LME was up 1.7% at $6,118 a tonne at 1432 GMT.
LONDON: Copper prices scaled five-month highs on Monday, boosted by optimism about demand in top consumer China and concerns about the spread of COVID-19 in Chile, the world's largest producer.
Benchmark copper on the London Metal Exchange was up 1.7% at $6,118 a tonne at 1432 GMT. Prices of the metal used widely in the power and construction industries earlier touched $6,136 a tonne, the highest since Jan. 22.
"Copper is most exposed to China, the country that came out of the crisis first, where we think real demand will recover to last year's levels," said Julius Baer analyst Carsten Menke.
"The market seems to think Chile will close mines to contain the coronavirus. That risk should not be underestimated, but Chile's economy is geared toward copper, it is dependent on revenues from the mining sector."
DEMAND: Chinese demand can be gauged from its imports of copper at 436,030 tonnes in May, down 5.5% from April, but up more than 20% year on year.
CHINA: Stronger growth prospects in China have also boosted the country's blue-chip stocks, which jumped to 5-year highs on Monday, as policy easing and capital market reforms triggered investor buying.
"Although demand has picked up in China, the recovery in other Western markets has been more muted," Edward Meir, analyst at ED&F Man Capital Markets said in a note.
"Moreover, mine supply disruptions are still not tipping any of the complexes we follow into deficit, as demand retrenchment has more than offset any issues having to do with supply."
CHILE: Chile's copper industry is nearing a tipping point as the new coronavirus explodes across the country, mine workers and analysts say, laying bare the hidden costs of policies that have until now salvaged its output of the red metal.
OTHER METALS: Aluminium was up 1% at $1,631 a tonne, zinc rose 1.2% to $2,051, lead added 0.3% to $1,786, tin gained 1.1% to $17,020 and nickel climbed 2.5% to $13,325.