(Recasts, updates prices) BEIJING, April 29 (Reuters) - Copper...

(Recasts, updates prices)

BEIJING, April 29 (Reuters) - Copper prices moved higher on Monday, driven by dwindling raw material supply and investors' focus on a potential BHP Group-Anglo American deal that would make the world's largest copper miner.

Three-month copper on the London Metal Exchange CMCU3 advanced 0.5% to $10,018.50 per metric ton by 0453 GMT, a two-year high.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 was up 0.8% to 81,020 yuan ($11,184.12) per ton.

Shortage of copper ore and concentrate, triggered by the closure of the big Cobre Panama mine in December, sent the processing fees for copper to negative for the first time last week.

Spot treatment charges of copper concentrate in China tumbled to $-2.6 per ton, the lowest according to Fastmarkets' index tracing data back since 2013.

Meanwhile, BHP Group's bid for Anglo American put supply concerns in focus and intensified fund buying.

The group is considering making an improved offer in the coming weeks after its $39 billion initial proposal was rejected.

But even a combined company is not expected to increase overall supply amid ongoing challenges such as limited discoveries of world-class size, ANZ analysts said.

The Federal Reserve's May 1 policy review is the prime focus for markets this week, with investors already anticipating a delay in its rate cuts after a batch of sticky U.S. inflation and as officials, including Chair Jerome Powell, emphasise even those plans are dependent on data.

LME aluminium CMAL3 was little moved at $2,570 a ton, nickel CMNI3 climbed 0.9% to $19,265, zinc CMZN3 increased 0.9% to $2,868.50, lead CMPB3 gained 0.5% to $2,218, tin CMSN3 was 0.2% lower at $32,350.

SHFE aluminium SAFcv1 added 0.7% to 20,640 yuan a ton, nickel SNIcv1 slid 0.3% to 143,030 yuan, zinc SZNcv1 climbed 0.6% to 22,940 yuan, lead SPBcv1 moved 0.3% up to 17,260 yuan, tin SSNcv1 declined 0.7% to 259,980 yuan.

For the top stories in metals and other news, click

or

($1 = 7.2442 Chinese yuan renminbi)