Shanghai Futures Exchange copper ended up half a percent at 42,380 yuan ($6,832) a tonne on Friday. A trader said funds had been closing short copper positions to fund margin calls in equities. Traders said concerns over Greece and slowing growth in China would crimp gains. Activity in China's services sector slowed to its lowest in five months in June, a private survey showed on Friday, suggesting the economy still needs further policy support despite some indications of steadying.
Property prices and sales have shown signs of improving in recent months, at least in big cities, and a pick-up in building completions is expected to feed into copper demand. "We are expecting an uptick in demand in the third quarter, with a peak in the fourth quarter," said analyst Chunlan Li of consultancy CRU in Beijing. CRU sees copper demand hitting 4 percent year-on-year growth in the third quarter before rising to 4.9 percent in the fourth quarter, up from 3.2 percent in the second quarter. Markets were also on the defensive ahead of a referendum in Greece. Supporters of Greece's bailout terms have taken a wafer-thin lead over the "No" vote backed by the leftist government, 48 hours before a referendum that may determine the country's future in the euro zone, a poll showed.
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