METALS-Copper set for monthly gain on global supply concerns

Oct 31 (Reuters) - London copper prices rose on Friday after a dip in the previous session and were set for a third straight monthly gain on global supply concerns.

Three-month copper on the London Metal Exchange CMCU3 increased 0.46% to $10,967.5 per metric ton by 0225 GMT, having risen 6.75% so far this month.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.99% to 87,610 yuan ($12,299.59) a ton. However, it was up 5.28% so far this month, also heading for a third straight monthly gain.

Supply concerns have risen recently, with many top miners reporting lower output for the first nine months of the year.

Analysts from investment bank Citi remain bullish on copper, expecting higher prices in 2026 due to stronger cyclical demand expectations and mine supply constraints.

U.S. President Donald Trump said on Thursday he had agreed with President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on illicit fentanyl trade, resuming U.S. soybean purchases and keeping rare earths exports flowing.

While the deal should stabilise U.S.-China relations, it failed to resolve underlying issues, said analysts from ANZ.

Recent mine supply disruptions continue to weigh on China's smelting industry, with processing fees dipping into negative territory as Chinese smelters fight for a share of a decreasing supply flow, ANZ said.

Capping London copper's gains on Friday, the dollar index =USD reached its highest since August 1. A firmer dollar makes greenback-denominated assets less affordable to holders of other currencies. FRX/

Among other London metals, aluminium CMAL3 rose 0.24% to $2,870.5 a ton, nickel CMNI3 edged up 0.03% to $15,235, lead CMPB3 gained 0.02% to $2,022.5, tin CMSN3 climbed 0.72% to $36,050, and zinc CMZN3 increased 0.2% to $3,043.5.

SHFE aluminium SAFcv1 rose 0.16% to 21,300 yuan and lead SPBcv1 strengthened 0.26% to 17,405 yuan, while nickel SNIcv1 dipped 0.36% to 120,800 yuan, tin SSNcv1 eased 0.04% to 284,570 yuan, and zinc SZNcv1 decreased 0.18% to 22,380 yuan.

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DATA/EVENTS (GMT)
0700 UK Nationwide house price mm, yy Oct

0745 France CPI (EU Norm) Prelim MM, YY Oct

0745 France CPI Prelim MM, YY NSA Oct

0745 France Producer Prices YY Sep

1000 EU HICP Flash YY Oct

1000 EU HICP-X F,E,A,T Flash MM, YY Oct

($1 = 7.1230 Chinese yuan)

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