Shanghai copper closed higher and recorded its largest monthly gain in 16 months.

The monthly increase was 5.4%, marking the largest monthly gain for the contract since November 2022. The London Metal Exchange (LME) was closed for Good Friday. Due to shortages in copper ore and concentrates, Chinese copper smelters earlier this month agreed to cut production, driving copper prices to historic highs. Chilean copper giant, the National Copper Corporation (Codelco), stated in a document on Thursday that due to operational and production challenges, the company's gross profit for 2023 was $3.12 billion, a 34% decrease from the previous year. As the world's largest copper producer, Codelco's copper production in 2023 was 1.325 million tons, the lowest level in 25 years, compared to 1.446 million tons in 2022. The company expects copper production in 2024 to range between 1.325 and 1.39 million tons, with capital expenditures of $4 to $5 billion. Additionally, Chile's National Statistics Institute (INE) stated on Thursday that copper production in Chile increased by 9.95% year-on-year to 420,242 tons in February. Lead futures prices rose to a four-month high due to tightening supply prospects. An analyst from a futures company stated that since mid-March, large domestic lead smelters have been undergoing maintenance, which is expected to affect production by about 20,000 tons in April. Nexa Resources recently announced the suspension of production at its Morro Agudo lead mine in Brazil starting May 1st, further increasing market concerns about supply. Shanghai lead climbed 2.88% to 16,815 yuan per ton. According to the Financial Times, a senior government official in Indonesia stated that the country will continue to push forward with its plan to expand nickel production, despite oversupply forcing competitors to close nickel mines. The country's goal is to keep nickel prices low and safeguard the long-term demand for this crucial metal in electric vehicle batteries. Shanghai aluminum closed up 1.41% at 19,710 yuan; Shanghai nickel rose by 0.94% to 130,920 yuan; Shanghai zinc rose by 0.62% to 20,945 yuan; Shanghai tin rose by 2.12% to 228,100 yuan.