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Copper HG-FT closed higher Monday as demand prospects brightened after Codelco, the world's top copper miner, raised premium charges for Asian customers in 2010, while a weaker dollar provided an additional boost.

Copper for December delivery on the New York Mercantile Exchange's Comex division ended up 1.5 cents (U.S.) to settle at $2.9675 a pound, after dealing in a session range between $2.9550 and $3.0020.

On the London Metal Exchange, three-month copper futures ended up $50 at $6,540 a tonne.

Chile's Codelco raised its term premium for copper to the Japanese port of Yokohama to $75 a tonne in 2010, and to $74 for South Korean buyers, in anticipation of rising demand in parts of Asia, industry sources said.

These increases for Japan and South Korea were equivalent to around 15.5 per cent of 2009's levels.

“They're selling more and more of their mined copper to China, India and Korea and it's a clear example of how much that region is powering ahead, while Europe and the U.S. are not growing very quickly,” said Robin Bhar, an analyst at Calyon.

Further support stemmed from a struggling dollar, which fell to a 15-month low against a basket of currencies after a weekend G20 agreement to keep emergency stimulus spending in place indicated global interest rates will remain low.

“A lot of this buying is dollar-driven, but it's also from the fact that interest rates are so low that fund managers are trying to move capital into assets ... they are not earning interest anywhere and investors are looking for physical assets,” said Michael Gross, futures analyst with Optionsellers.com in Tampa, Fla.

A softer dollar typically lifts dollar-denominated metals by making them cheaper for holders of other currencies.

The emergence of improved economic conditions in most major economies, as indicated by the Organization for Economic Co-operation and Development's composite leading indicator at 100.6 in September from 99.3 in August, also helped underpin prices.

The market is also closely watching China's October trade and output data due later in the week.

China's October imports of unwrought copper and semi-finished copper products are expected to fall after a surprisingly strong inflow in September, hit by poor margins for spot imports and delays to contracted shipments.

Copper has more than doubled in value so far this year on the back of robust demand from China, the world's top consumer of the metal used in power and construction.

“Copper's got more upside heading to the end of the year,” said Daniel Smith, an analyst at London's Standard Chartered. “$7,000 is the next target before the end of the year.”

German data also supported. Industrial output in Europe's largest economy rose much faster than expected in September and imports posted their biggest increase in over a year.

But inventories of copper at LME warehouses have been rising since mid-July, restraining sentiment. Stocks rose 3,900 tonnes to 389,475 tonnes, their highest since early May.

Aluminum AL-FT ended at $1,952 from $1,910. Stocks of the metal used in transport and packaging fell 2,475 tonnes to around 4.5 million tonnes, off this year's record highs around 4.6 million tonnes.

Zinc closed at $2,160 from $2,174 and battery material lead at $2,300 from $2,250.

Nickel ended at $17,430 from $17,350 and tin at $14,750 a tonne from $14,750 on Friday.