London Metal Exchange copper futures rose to fresh highs on Monday, bolstered by a nearly 4 percent jump in Shanghai futures as they resumed trading following a weeklong holiday.
But Shanghai's rise was more cautious than expected, keeping LME trade muted and leaving LME copper futures far short of the milestone of $4,000 a tonne.
"Shanghai's rise this was a little disappointing. It shows the market there is still weak," said a Singapore-based metals trader. "People were trying to trigger the LME to move one way or the other, but otherwise they've been very hesitant."
LME copper was indicated at $3,937/$3,942 a tonne, above the historic high of $3,932 a tonne marked on Friday. But by 0436 it had retreated to $3,932/$3,937 a tonne.
Shanghai copper futures jumped on Monday as traders caught up with a 3 percent rise in LME futures while China enjoyed its week-long National Day break.
The rise was more moderate than some had expected, because of higher margin requirements and the perception that domestic supply was still ample.
Only Shanghai's November contract hit its 4 percent upper trading limit on Monday, while the most active contract, December, ended the session at 36,920 yuan ($4,565) a tonne, 30 yuan short of its 4 percent upper limit.
Other LME base metals futures moved only slightly.
LME aluminium futures held steady at $1,905/$1,910 a tonne compared with Friday's closes at $1,907 a tonne.
Nickel futures rose to $13,100/$13,150 a tonne, from Friday's close of $13,100 a tonne.
Zinc futures retreated slightly from an eight-year high hit on Friday.
They were at $1,475/$1,480 a tonne, down from Friday's close of $1,479 a tonne. Lead futures stood unchanged at $967/$971 a tonne.