The most traded August copper contract on the Shanghai Futures Exchange fell 1 percent to 44,420 yuan ($7,160) a tonne. It faced strong resistance at the 200-day moving average of 44,500 yuan on Wednesday. Copper is getting little help from the lacklustre economic outlook in top consumer China.
"Even if you get some early signs which show you some improvement ... the macro story in China doesn't look good," said analyst Dominic Schnider of UBS Wealth Management in Hong Kong. "The only area that is more debatable is the supply side. Here copper gives you a little bit of an edge. We are still calling for a $6,350 short-term target - three months - with room to go for $6,700 in the second half," he said.
Chinese industrial sector profits rose 2.6 percent in April, the first annual rise since last September, National Bureau of Statistics data showed, in a sign that the central bank's easing measures may finally be filtering into the real economy. In other metals, ShFE tin slid 1.9 percent, tracking Tuesday's loses in LME tin on supply concerns as Myanmar ramps up mine production. LME tin fell to its lowest in a month at $15,330 a tonne on Wednesday after losing nearly 2 pct on Tuesday.
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