The most-traded contract for the metal on the Shanghai Futures Exchange closed 1.9 percent higher at 22,905 yuan a tonne on Tuesday. "There is some profit-taking after the market went up quite a lot," said Helen Lau, an analyst at Argonaut Securities. "Copper prices are consolidating at current levels and there needs to be more evidence on the demand front for the prices to rise further. As of now, expectations of improved demand have been priced in."
Copper and other base metals have been supported by a private survey showing that growth in China's services sector accelerated to a 16-month high in November. In addition, the gains in industrial metals on Monday were attributed to buying by algorithmic funds that use computer programmes to make trading decisions, often based on technical factors such as momentum.
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