BEIJING: Shanghai copper outperformed its peers in the base metals complex, gaining more than 1% on Wednesday, supported by signs of improving demand in China, the top metals consumer.
The most-active copper contract on the Shanghai Futures Exchange was up 1.25% at 78,760 yuan ($10,901.34) a metric ton, as of 0234 GMT.
Underlying fundamentals are showing improvement, with the ANZ Downstream Copper Demand Indicator showing positive growth, especially in grid infrastructure and electric vehicles, ANZ analysts said in a note.
“Manufacturers, supported by recent stimulus measures, are ramping up production … copper cathode inventories in Shanghai and Guangdong extended declines from a peak due to fewer imports in recent months.”
Refined copper output in China will likely slide in April as more smelters will start equipment maintenance and those suffering severe loss will lower their capacity utilization rate, analysts at First Futures said in a note.
Copper cathode output among smelters surveyed jumped by 5.28% year-on-year to 1.9 million tons in the January-February period, state-backed research house Antaike said in a note on Tuesday, forecasting March output to grow by 4.32% from the year before to 969,000 tons.
China consumes about half of global copper supplies annually.
Copper rises with support from weaker dollar, decline of available LME stocks
Fears of a global trade war, however, limited its price gains, ANZ analysts said.
SHFE aluminium rose nearly 1% to 20,960 yuan a ton, zinc added 0.95% to 23,935 yuan, tin advanced 0.57% to 263,990 yuan, lead little changed at 17,455 yuan, while nickel eased 0.26% to 132,270 yuan.
Three-month copper on the London Metal Exchange (LME) nudged 0.03% higher to $9,682 a ton.
LME aluminium edged 0.22% higher to $2,710 a ton, lead added 0.19% to $2,059, while tin edged down 0.05% to $33,145, zinc lost 0.02% to $2,919.5 and nickel shed 0.15% to $16,455.
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