Copper closed firmer on Monday but prices were seen capped by demand concerns, while zinc and lead prices were supported by output cuts in China. Copper for three-month delivery on the London Metal Exchange closed slightly higher at $8,285 a tonne against $8,270 on Friday.
"Production is quite robust and demand is a bit sluggish at the moment," said Eugen Weinberg, analyst at Commerzbank. Analysts see demand for copper, mainly used in the building and power sectors, undermined by problems in the US housing market and signs of slowing copper consumption in China.
"When you see the US construction market in free-fall and given the slowing demand in China as well, everything is starting to turn against copper in terms of demand," said analyst Daniel Smith at Standard Chartered.
Lead and zinc were steady below session highs prompted by China's small and medium-sized zinc smelters announcing on Saturday they had agreed to cut production immediately by 10 percent to lift local prices.
Zinc closed down $20 at $2,005 a tonne, having earlier touched a session high of $2,120, its highest level since May 29. Lead was unchanged at $1,965 per tonne, after hitting an intra-day high of $2,055 - a rise of 4.6 percent. The metal has gained more than 26 percent in a week. Analysts said they were still assessing the cutbacks.
Aluminium was steady as abundant supplies kept the market sated, offsetting rising energy prices, which underpin prices longer term. Stocks in LME warehouses rose by 2,050 tonnes to over 1.09 million tonnes - about 10 days of global consumption. Aluminium for three-month delivery closed at $3,306 versus $3,318 a tonne at the close on Friday, when it hit an all-time high of $3,380 a tonne.
Nickel finished lower at $20,750 against $21,600 on Friday, having earlier fallen more than 4 percent to an intraday low of $20,697 on worries about falling demand from stainless steel makers. Tin last traded at $23,250 versus Friday's $22,900.