Shanghai Futures Exchange copper climbed 0.7 percent to 45,730 yuan ($6,599) a tonne on Monday. Market activity was subdued as many Western traders were still away on holiday. Weekly Shanghai copper stocks jumped 17 percent last week. Premiums for copper in China bond dropped $5 on Friday. Broker Jefferies hiked copper price forecast for 2017 to 2.75 per pound from 2.38 per pound, a surge of more than 15 percent, as it now sees a deficit for this year due to less spending by miners.
"Copper is our preferred commodity for 2017... We now forecast a small (82,000 tonne) copper market deficit this year due to lower supply projections," it said in a report. "Copper mining companies slashed capex, and in some cases, high-graded mines during the downturn. Operating risk has increased as a result, and unexpected disruptions are likely to be a prominent factor in the copper market this year."