Shanghai Futures Exchange copper was trading up 0.7 percent at 47,670 yuan ($6,8945) a tonne on Wednesday ahead of the outcome of a US Federal Reserve meeting that is expected to dictate the direction of the dollar, with dissipating concerns over mine supply dragging on prices for the metal. Traders were sidelined ahead of the meet which may spark volatility in the dollar.
In general, copper prices will find strong support around $6,000 a tonne due to global supply shocks, said Argonaut Securities in a report.
"We rather think any price consolidations provide BUY opportunities in copper-related stocks," it said.
Analysts now expect a copper market deficit for 2017 after prolonged disruptions at the world's two largest copper mines, Grasberg in Indonesia and Escondida in Chile, even as the immediate disruption looks set to ease.
Escondida plans to restart operations after striking workers again rejected an invitation by controlling owner BHP Billiton to return to negotiations, an executive told reporters late on Tuesday.
A strike at Peru's top copper mine, Cerro Verde, may end next week if the labour ministry declares it illegal, the head of the union said on Tuesday after negotiations with owner Freeport-McMoRan Inc ended without an agreement on labour demands.
In news, Indonesia's Amman Mineral Nusa Tenggara (AMNT) has committed to invest $9.2 billion to expand its mining business, including the construction of a new copper smelter near its mine in Sumbawa, a mining ministry official told Reuters on Wednesday.
The demand outlook for metals was encouraging. China issued a raft of upbeat data on Tuesday showing its economy got off to a strong start to 2017, supported by strong bank lending, a government infrastructure spree and a much-needed resurgence in private investment.
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