Shanghai copper up

Shanghai copper edged up half a percent on Monday on expectations that China's copper supply could tighten acceptor prices in Shanghai traded at a range between 66,550 yuan and 66,750 yuan a tonne on Monday, up 50 yuan.
The supply of copper scrap into China's Guangdong province has fallen sharply over the past two weeks as customs officials clamped down on imports of scrap declared as low grade, industry sources said last week.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 1 percent last week to 90,089 tonnes. Copper for delivery in three months on the London Metal Exchange was up $45 at $7,795 a tonne.
"Widening the price gap between Shanghai and London could lead to a recovery on China's imports in the fourth quarter. In the short term, it is likely that the copper price will have some support from some solid fundamentals," said a Hong Kong-based analyst, noting that the arbitrage was gradually improving.
Faced with low profits on imports this summer, Chinese merchants have resold imported copper to other Asian countries or delivering it to the London Metal Exchange, traders have said.
Codelco, the Chilean state-owned copper firm, will start producing copper again from its El Tenant division on Monday, after four days of strikes and protests by contract workers, the company said on Sunday. Aluminium rose $4 at $2,754, while the most active aluminium contract in Shanghai was up 50 yuan at 19,660 yuan a tonne.
China will impose a 15 percent tax on exports of rod and bar made of primary aluminium on August 1 and may cut tax rebates on exports of most semi-finished aluminium products. The moves could reduce consumption in the world's top market of the metal.
"In fact over the coming months we expect the country will no longer be a net exporter of aluminium following official steps to increase export taxes and encourage imports," analysts at Deutsche Bank said in a note. London lead was up $5 at $2,975 a tonne. The metal hit an all-time high of $3,500 on July 20 and since then investors have been taking profits.
Nickel, a key ingredient in stainless steel, fell $100 to $30,400 a tonne, while Tin, which hit a record high at $15,700 a tonne on July 19, eased $25 to $15,350.