May 11 (Reuters) - Copper prices edged higher on Monday,
supported by stronger-than-expected inflation data from top
consumer China and supply concerns after Freeport delayed a full
recovery of its Grasberg mine in Indonesia.
The benchmark three-month copper on the London Metal
Exchange was up 0.10% at $13,586 a metric ton, as of 0242 GMT,
after climbing to a three-month high on Friday.
The most-traded copper contract on the Shanghai
Futures Exchange rose 0.68% at 104,360 yuan ($15,358.13) a ton.
China's consumer prices rose 1.2% in April from a year
earlier, beating expectations for a 0.9% increase, while
factory-gate prices jumped 2.8%, also above estimates and
hitting a 45-month high, according to National Bureau of
Statistics data.
The data supported sentiment towards industrial metals,
although traders said the rise in factory-gate prices was driven
largely by higher energy and raw material costs rather than a
clear rebound in domestic demand.
Elevated energy costs due to the Iran conflict remained a
pressure point for copper, with Brent crude holding
above $104 a barrel after U.S. President Donald Trump swiftly
rejected Iran's response to a U.S. peace deal.
Copper was also supported by supply concerns after Freeport
delayed the full resumption of its flagship Grasberg mine to
early 2028, from previous expectation of a return to full
capacity by 2027.
The mine is currently operating at about 40%-50% capacity as
it still recovers from a fatal mudflow last September.
The delay adds pressure to an already tight copper
concentrate market, where mine disruptions have squeezed smelter
treatment charges and kept supply risk high.
Sentiment was also supported by Trump's scheduled visit to
China this week.
Among other base metals on the LME, aluminium gained
0.56%, zinc nudged 0.15% higher, lead added
0.18%, nickel climbed 1.47% and tin surged
2.21%.
Elsewhere on SHFE, aluminium rose 0.70%, zinc
declined 0.80%, lead dipped 0.15%, nickel
added 0.56% and tin gained 1.06%.
Monday, May 11
DATA/EVENTS (GMT)
0645 France Reserve Assets Total April
1400 US Existing Home Sales April
($1 = 6.7951 Chinese yuan)