Analysts at Guangda Futures said the lower copper prices would see some demand from the market ahead of April and May, a traditional solid demand season. A slowdown in inventory buildup also signalled a pickup in demand as market participants look for signs of a solid post-pandemic recovery.
China's economy is expected to generally rebound in 2023 and monetary policy will be precise and forceful, the central bank said in its quarterly policy implementation report released on Friday.
Copper supply from Indonesia, Peru and Chile has been facing disruptions. First Quantum Minerals Ltd said last week it had suspended ore processing operations at a key Panamanian copper mine.
The most-traded April copper contract on the Shanghai Futures Exchange ended day trading 1.8% lower at 68,300 yuan ($9,804.20) a tonne.
LME lead added 0.6% at $2,083 a tonne and aluminium gained 0.2% to $2,340.50 a tonne, while zinc nudged down 0.5% to $2,948.50 a tonne and tin lost 1.7% to $25,205 a tonne. Meanwhile, tight hydropower supply in the southwestern Yunnan province led to production cuts at aluminium and zinc smelters, according to local media reports. SHFE aluminium fell 1.3% to 18,375 yuan a tonne, nickel dropped 1.5% to 194,910 yuan a tonne, zinc fell 2.6% to 22,880 yuan a tonne and tin shed 2.3% to 207,560 yuan a tonne, while lead was little changed at 15,345 yuan a tonne. For the top stories in metals and other news, click or ($1 = 6.9664 yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu)
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