LONDON, March 15 (Reuters) - Fund buying propelled copper prices to new highs on Friday, but some investors and analysts were cautious about possible output cuts in China and whether the rally would be sustained.
Shanghai copper prices hit a record high and prices in London touched an 11-month peak after Chinese smelters agreed to trim production in the face of weak profits and losses.
Three-month copper on the London Metal Exchange (LME) had advanced 1.2% to $8,997 per metric ton by 1045 GMT after hitting $9,066.50, the highest since April 2023.
The most-traded May copper contract on the Shanghai Futures Exchange (SHFE) closed up 2% at 73,130 yuan ($10,161.88) a ton, having surged to a record high of 73,270 yuan.
"This is now being driven by hot money moving back into the market, but as we know, hedge funds are not married to a position, they will seek a divorce at any given time if things start to turn sour," Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said.
Major Chinese copper smelters have agreed to lower operation rates, adjust maintenance plans and postpone projects, state-backed research house Antaike said on Thursday, but some traders said they had doubts about the market strength.
China accounted for 47% of the global refined copper output last year, data from the World Bureau of Metal Statistics showed.
China is also the world's biggest copper consumer, but subdued economic growth and a lack of big stimulus support have left the demand outlook flat.
"I'm a bit hesitant at this point because although the ducks are starting to line up in a row, the main one we're missing is rate cuts, potentially driving some restocking," Hansen said.
For the rally to be extended, support levels needed to hold at $8,860 and $8,716, he added.
LME aluminium rose 0.8% to $2,268.50 a ton, nickel climbed 1.1% to $18,275, zinc advanced 1.1% to $2,576.50, tin gained 1.3% to $28,610, while lead fell 1.2% to $2,132.50.
For the top stories in metals, click ($1 = 7.1965 yuan) (Reporting by Eric Onstad Additional reporting by Mai Nguyen in Hanoi; editing by Barbara Lewis)
