Copper futures have closed higher on the London Metal Exchange (LME), boosted by signs of improving access to credit in top metal consumer, China.
At the PM kerb close on Monday, LME three-month copper was up 0.3 per cent at $US7,170 a metric ton.
Base metal prices rose alongside stock markets on Monday after Chinese bank lending made a larger-than-expected jump in January, with financial institutions issuing 1.32 trillion yuan ($A241 billion) worth of new loans last month. Although Chinese banks typically make more loans at the beginning of the year, some analysts viewed the jump as a sign of strength in the economy.
China is the world's top consumer of metals, accounting for around 40 per cent of global copper demand.
"China's release of surprisingly strong trade and lending reports could play a large part in diminishing fears of a slow-down and help the general advance" in base metal prices, said INTL FCStone analyst Edward Meir.
A weaker US dollar -- on the back of the recent string of disappointing economic US data -- should also provide further support to base metals in the days ahead, Meir said.
Metals are priced in US dollars, making them more affordable to other currency-holders when the greenback softens.
