BEIJING: Copper prices rose on the first trading day in the second half this year, buoyed by better investor sentiment, while increased supplies and demand concerns weighed on the market.

Three-month copper on the London Metal Exchange was up 0.6% to $8,365 per metric ton by 0219 GMT, rebounding from a quarterly drop.

The most-traded August copper contract on the Shanghai Futures Exchange (SHFE) rose 1.8% to 68,320 yuan ($9,432.16) per metric ton.

Copper slides on strong dollar, weak data from China

The gains came against better stock performance, includinggains posted by the CSI 300 Real Estate Index and the Hang Seng mainland property index.

Data released last week about a third monthly contraction of China’s factory activity strengthened hopes for fresh stimulus.

Property is a major demand driver for industrial metals.

Other metals on SHFE also trended up. Aluminium was up 0.2% to 18,025 yuan a metric ton, zinc climbed 1.3% at 20,190 yuan, lead added 1.2% to 15,615 yuan, nickel moved 2.3% up to 160,780 yuan, and tin jumped 4.5% at 226,700 yuan.

However, analysts warned the near-term demand outlook for copper used in power, construction and transportation sectors remained subdued amid a decline in some copper users’ operation rates.

China’s factory activity growth slowed in June, a private sector survey showed on Monday, with sentiment waning and recruitment cooling as firms grew increasingly concerned about sluggish market conditions.

Copper stocks on SHFE rose 13% to 86,313 metric tons on Friday, reversing a decline that began in late February.

LME aluminium gained 0.5% at $2,161.50 a metric ton, tin rose 2.5% to $27,445, nickel added 0.6% to $20,635, while zinc shed 0.2% to $2,384.50, lead nudged down 0.1% to $2,096.50.