MELBOURNE: Shanghai Futures Exchange copper rose 0.68 percent, or 260 yuan to 38,390 yuan ($5,671) on Monday on stronger-than-expected demand from China but was still set to close flat for the month, while aluminium tracked coal prices to push towards a stronger finish for a second month in a row.

Shanghai aluminium hit the highest in more than two years, and was last up 2.2 percent at 14,100 yuan ($2,083), helped by soaring prices of raw feed material coal.

China's near-term copper outlook is looking brighter, said CBA commodity strategist Vivek Dhar in Melbourne. "House prices for me was key. We saw house prices really rocket. If you see state grid investment it's up as well," he said, referring to recent Chinese economic data.

Still, new (housing) starts and some other leading construction indicators fell sharply in September and that suggests house prices may moderate going forward. "If this is the start of weaker construction volumes, copper prices will likely come under pressure," he noted.-Reuters