Shanghai copper edged higher on Wednesday as London futures ticked down, but further gains were unlikely with Chinese buyers unwilling to commit while international prices hold above $8,100 a tonne. Shanghai August copper rose 240 yuan or 0.4 percent to 62,470 yuan ($8,991) a tonne at the close.
London Metal Exchange copper for delivery in three months ticked down $10 or 0.1 percent to $8,180 at 0703 GMT. The gap in prices between the London and Shanghai copper markets narrowed to 3,871 yuan from 4,335 yuan on Tuesday, including Chinese value-added tax. The spread hit a record 6,549 yuan on April 18.
Shanghai aluminium rose 10 yuan to 19,105, while LME aluminium fell $3 to $2,993, holding near $3,000. Oversupply has capped Chinese prices, which have gained a modest 5 percent this year. But London prices are up around 25 percent, making aluminium the second strongest performer among LME metals, as the market bets that high energy prices and power supply problems will soon make a dent in the LME's 1 million tonne stockpile of the metal. LME nickel fell $500 or 2.2 percent to $22,800, following a 3.3 percent slide on Tuesday.