LONDON: Copper prices rose on Wednesday as firmer-than-expected economic growth figures from China boosted expectations for higher demand in the world's top metals consumer.
China's economy grew at a 6.4 percent pace in the first quarter from a year earlier, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement.
"The data is confirmation that there are clear tailwinds to Chinese growth into the second quarter and mid-year," said Deutsche Bank metal strategist Nick Snowdon.
Benchmark copper
rose 0.6 percent to $6,532 per tonne in official open outcry trading, inching to a near two-week high of $6,545 touched earlier.
China, which is in the midst of a trade conflict with the United States, ramped up fiscal stimulus this year to support the world's second largest economy after a slew of disappointing data pointed to a potential slowdown.
But some analysts warned it may be too early to say the GDP data was a sign of a full turnaround in the Chinese economy and a break from narrow trading ranges for metals.
"Whilst potentially the first quarter represents a key turning point for the balance of 2019, as to whether it presents a panacea to the mean reversion/range trading so evident in our space seems unlikely," said Alastair Munro at broker Marex Spectron.
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