The most-traded September copper contract on the Shanghai Futures Exchange climbed 1 percent to 49,830 yuan ($8,000) a tonne on Thursday, after earlier touching its highest since late February. Copper has clawed back nearly 10 percent from more than three-year lows reached in March, but is still down 6 percent this year.
Seasonal demand is expected to wane going into the third quarter, though the shortage in supply is expected to keep a floor under prices. "Global supply and demand is either in balance or a small deficit," said analyst Joel Crane of Morgan Stanley in Melbourne. "With continued disappointments in a number of key projects, it's very easy to forecast a scenario where the market stays in fundamental balance - prices are fundamentally justified at current levels."
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