BEIJING: Shanghai copper prices rose to a two-month high on Wednesday, underpinned by tightening supplies ahead of a long weekend in key consumer China.

The most-traded July copper contract on the Shanghai Futures Exchange climbed 0.9% to 69,160 yuan ($9,615.71) per metric tonne, as of 0157 GMT, hitting its highest since April 20.

Chinese markets will be closed on Thursday and Friday for holidays.

Higher offers amid tight supply in the spot market lifted copper premium to an eight-month high of 640 yuan a tonne.

Supply has tightened because of recent unfavorable import conditions, partly due to a weakening yuan, traders said.

A weaker yuan makes it more costly to buy the greenback-priced metal.

SHFE copper stocks stood at 61,090 tonnes last Friday, having dropped 70% from a February peak.

Market participants expect to see some more copper exports from China, which is traditionally a buyer of the metal. Three-month copper on the London Metal Exchange was up 0.3% at $8,572 per tonne.

The dollar held firm following surprisingly strong US housing data, while investors awaited Federal Reserve Chair Jerome Powell’s appearance before Congress later in the day for further policy cues.

Copper slips as China rate cuts disappoint

LME aluminium gained 0.2% at $2,235 a tonne, tin moved up 0.5% to $26,975, zinc rose 1.4% to $2,392, nickel nudged up 0.1% to $22,060, while lead eased 0.2% to $2,139.50.

SHFE aluminium climbed 0.4% to 18,560 yuan a tonne, zinc was unchanged at 20,290 yuan, lead gained 0.5% to 15,585 yuan, nickel was little moved at 168,420 yuan, and tin ticked up 0.4% to 218,160 yuan.