Copper prices bounced more than 7%on Monday amid a broad recovery in equity and commodity markets.
An announcement last week that the world's biggest copper mine, Escondida in Chile, had declared a force majeure on some deliveries following a mill closure also helped prices. The mine accounts for 8% of global supply.
Copper for delivery in three months on the London Metal Exchange rose as high as $US5,175 a tonne from $US4,800 at the close on Friday. It ended at $US5,115.
In US trade, copper for December delivery finished up 16.80 cents, or 7.83%, at $US2.3125 per lb on the New York Mercantile Exchange's COMEX division.
Traders said the rebound came after the announcement of an unified government rescue plan for European banks, which drove up Wall Street and other stock markets.
Copper lost more than 20% of its value in London and New York last week. it is used in construction and power.
Fall in aluminium
However, aluminium prices are falling.
On the London Metal Exchange, aluminium ended at $US2,250, up from $US2,215 a tonne. The metal has fallen almost a third since reaching a record high of $US3,380 a tonne on 10 July.
China's top aluminium maker, Chalco, said Friday it might have to cut production.
Nickel closed at $US12,800 a tonne, up from $US12,175. Prices dropped 23% last week and have fallen 75% since reaching a record of $US51,800 in May 2007.
Lead touched a high at $US1,575 a tonne and ended at $US1,565, up from $1,475 at the close on Friday. Prices fell 13% last week.
Zinc rose more than 5% to peak at $US1,520 and ended at $US1,480, up from $US1,440 on Friday. Tin climbed to $US14,525 a tonne from $US14,050.
