Copper prices rose on Wednesday as investors bet on a strong outlook for the metal in the second half of this year due to falling inventories and rising premiums in top consumer China.

Three-month copper on the London Metal Exchange advanced 0.4% to $9,792.50 a tonne by 0512 GMT, and the most-traded September copper contract on the Shanghai Futures Exchange gained 0.3% at 72,220 yuan ($11,098.82) a tonne.

Yangshan copper premium was last traded at $45 a tonne, hovering near its highest level since end-April, indicating higher demand for importing the metal into China.

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Meanwhile, the metal price is supported by falling inventories in ShFE which hit their lowest since Feb. 10 at 96,087 tonnes by the end of last week, exchange data showed.