Copper prices rose Monday as investors were hopeful that European leaders were moving closer to resolving the region's debt crisis.
Base metals rose across the board, with Shanghai copper SCFc3 rising 4.5 percent to a high of 53,980 yuan ($8,455.51). Three-month copper on the London Metal Exchange rose as much as 2.87 percent to a high of $7,350 a tonne, after rallying 6 percent on Friday in its largest one-day advance since early 2010.
European Union leaders made some progress towards a strategy to fight the euro zone's sovereign debt crisis on Sunday, but the final decision was deferred until a second summit on Wednesday.
Some extra confidence in Europe is helping copper prices rise, while the euro is steady. The news on Sarkozy backing down from his stance is good news, even if it is not a solution yet, said a Sydney-based trader.
French President Nicolas Sarkozy backed down in the face of implacable German opposition to his desire to use unlimited European Central Bank funds to fight the crisis. Instead, the euro zone may turn to emerging economies such as China and Brazil for help in underpinning its sickly bond market.
Asian stocks rose after euro zone leaders made some progress towards a strategy to tackle the region's debt crisis. Traders are now waiting for final details expected to be unveiled later this week.
In the United States, two top Federal Reserve officials are arguing the U.S. central bank should consider resuming controversial large-scale mortgage bond purchases to support a fragile economic recovery.
Shanghai lead SPBc2 rose as much as 3.8 percent to a high of 14,780 yuan.
Base metals prices at 0120 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7260.00 115.00 +1.61 -24.38
SHFE CU FUT JAN2 53360 1690 +3.27 -25.73
LME Alum 2144.00 19.00 +0.89 -13.20
*SHFE AL FUT JAN2 16260 95 +0.59 -3.44
HG COPPER DEC1 327.90 5.55 +1.74 -26.14
LME Zinc 1830.00 25.00 +1.39 -25.43
SHFE ZN FUT JAN2 14535 235 +1.64 -25.37
LME Nickel 18900.00 100.00 +0.53 -23.64
LME Lead 1930.00 15.00 +0.78 -24.31
SHFE PB FUT 14705 470 +3.30 -19.86
LME Tin 22195.00 525.00 +2.42 -17.49
LME/Shanghai arb 853
Shanghai and COMEX contracts show most active months LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month.
* Shanghai Aluminium contract prices captured at 0151 GMT
($1 = 6.384 Chinese Yuan)