Shanghai copper heads for biggest monthly gain in 16 months

Shanghai copper prices were little changed on Friday, but poised for their biggest monthly gain in 16 months amid prospects of lower supply.

The most-traded May copper contract on the Shanghai Futures Exchange was up 10 yuan, or 0.01%, at 72,190 yuan ($9,988.65) per metric ton as of 0145 GMT.

The contract has gained nearly 5% so far this month, heading for its biggest monthly gain since November 2022.

The London Metal Exchange is closed for the Good Friday holiday.

Chinese copper smelters agreed earlier this month to curb their output amid short supply of copper ore and concentrate, sending prices to a record high.

Copper is used in the power, transportation and construction sectors.

Lead futures prices rose to a four-month high on prospects of tighter supply. Since mid-March, large domestic lead smelters have been undergoing maintenance, which is expected to affect about 20,000 tons of production in April, according to analysts at Jinrui Futures.

Nexa Resources’ recent announcement that it would suspend production at its Morro Agudo lead mine in Brazil from May 1 also added to supply concerns.

SHFE lead rose 2.42% to 16,740 yuan a ton.

Aluminum climbed 0.82% to 19,595 yuan, nickel added 0.54% to 130,400 yuan, zinc rose 0.55% to 20,930 yuan and tin rose 1.21% to 226,070 yuan.

($1 = 7.2272 Chinese yuan)

(By Siyi Liu and Colleen Howe; Editing by Subhranshu Sahu)