Shanghai Futures Exchange copper rose by 0.3 percent to 47,960 yuan ($7,100) a tonne on Wednesday weighed down by a slightly firmer dollar but supported by a pick-up in China's industrial activity that helped drive second-quarter economic growth. Among other metals, SHFE zinc and lead pared earlier losses to 0.5-1 percent.
Copper and other metals have been supported by relief that China's economy is proving more resilient than expected, partly due to easier liquidity ahead of China's national congress later this year which has fed metals demand, said Ivan Szpakowski, Chief Investment Officer of Academia Capital, a US-based emerging markets and commodities-focused hedge fund.
"I think copper prices continue to grind higher in the near term," Szpakowski said. A pick-up in the industrial sector helped China post better-than-expected second quarter economic growth as finance and real estate expansions slowed to multi-year lows, data showed on Tuesday.
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