Copper prices rose to two-week highs on Friday following a surge in a Chinese market that shrugged off another interest rate rise.
Three-month copper on the London Metal Exchange (LME) ended at $US6,795 a tonne compared with $US6,530 on Thursday. The metal seen as a gauge of economic activity earlier hit $US6,806 a tonne, the highest since December 11.
On the New York Mercantile Exchange's COMEX division, copper for March delivery ended up 13.20 US cents, or 4.45 per cent, to $US3.0975 a pound on the New York Mercantile Exchange's COMEX division, its highest settlement since December 7.
Traded volumes on the LME were low, with investors unwilling to make big moves in the run-up to the Christmas holidays.
China raised interest rates on Thursday, the latest in a series of measures to quell inflation and prevent the economy from overheating, though this did not dampen sentiment in the metals markets.
Expectations of continued strong demand for metal in China, the world's biggest user, is crucial to copper prices that have been hit, along with other assets, by the credit crunch and fears about the severity of an economic slowdown.
Lead closed up at $US2,645 a tonne from $US2,602 on Thursday, aluminium gained to $US2,411 from $US2,407, zinc rose to $US2,415 from $US2,310 and tin was quoted at $US16,350/16,400 from $US16,200.
Stainless steel raw material nickel rose to $US27,000 from $US26,250 on Thursday. Nickel hit a record high of $US51,800 a tonne last May.
In industry news, the world's biggest primary aluminium producer, Russia's United Company RUSAL, said it would buy a 25 per cent stake plus one share in compatriot miner Norilsk Nickel.
The move is an initial step towards the creation of what would be Russia's first diversified mining firm on a scale to rival London-listed BHP Billiton.
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
