BEIJING- Shanghai copper outperformed its peers in the base metals complex on Wednesday, gaining more than 1 percent on signs of improving demand in top metals consumer China.
The most-active copper contract on the Shanghai Futures Exchange closed morning trade 1.74 percent higher at 79,140 yuan ($10,939.10) a metric ton after hitting the highest since September 30, 2024 at 79,390 yuan.
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 rates, analysts at First Futures said in a note.
Copper cathode output among smelters surveyed jumped by 5.28 percent 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 percent from the year before to 969,000 tons.
China consumes about half of global copper supplies annually.
Fears of a global trade war, however, limited its price gains, ANZ analysts said.
