Updates prices at 1600 GMT

By Eric Onstad

LONDON, May 11 (Reuters) - Copper prices advanced to their highest in more than three months on Monday and were set to close at a record level, as worries about supply shortages outweighed concerns about lower demand due to the stalemate in the Iran war.

Benchmark three-month copper CMCU3 on the London Metal Exchange jumped 2.6% to $13,930 a metric ton by 1600 GMT, its strongest since January 29.

It was on track to post a record closing high after notching up its sixth straight session of gains, the longest bullish run since December. Copper hit a record peak of $14,527.50 in January, but closed well below that.

Copper's break on Friday above $13,500, which had been rejected several times since February, attracted funds that use technical levels, said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

"That price action looks pretty robust against the not-so-robust backdrop of the war in the Middle East. That points to supply being equally challenged at a time where demand is called into question."

Copper also received support after Freeport delayed the full resumption of its flagship Grasberg mine to early 2028 from the previous expectation of late 2027 and after factory inflation in top metals consumer China beat expectations, data showed, raising hopes that the government's efforts to boost the economy were having an impact.

U.S. Comex copper futures HGc3 gained 3.1% to $6.49 a lb, their highest since January 29.

LME aluminium CMAL3 gained 2.1% to $3,576 a ton on persistent worries about the impact of the conflict on producers in the Middle East, which accounts for about 9% of global supply.

"A rapidly tightening aluminium market has left investors questioning why the LME aluminium price has not rallied more," Morgan Stanley analyst Amy Gower said in a note.

Tin CMSN3 advanced 3.5% to $54,970 a ton, its highest since March 2.

The metal that is largely used as solder for electronics is expected to benefit from global chip shortages amid ongoing supply issues at tin operations, broker Marex said in a note.

Among other metals, LME zinc CMZN3 rose 1.4% to $3,478 a ton, lead CMPB3 added 0.6% to $1,987.50 and nickel CMNI3 climbed 1.9% to $19,255.

($1 = 6.7951 Chinese yuan)