The most-traded August copper contract on the Shanghai Futures Exchange ended up 0.4 percent at 44,300 yuan ($7,145) a tonne on Friday. The metal is pressured by ample inventories of refined metal, but prospects that Chinese stimulus measures would revive demand kept a floor under prices. Shfe nickel fell 2 percent. "We've seen positive trends in the imports for copper, and it certainly feels like monetary easing is helping trade financing activities, which should be supportive of copper imports in the shorter term," said analyst Daniel Hynes of ANZ in Sydney said.
"It's going to remain in a relatively tight range but I think we still haven't seen the high in this range just yet. The general pick up in sentiment is going to prolong this further than the underlying data would suggest." China's factories struggled to expand in May despite recent interest rate cuts and other policy stimulus, a Reuters poll showed, suggesting the government may have to do more to halt a protracted slowdown in the economy. Data is due on Monday.
Premiums, however, for metal held in China's bonded zones climbed $7.50 this week to $150-$260 on prospects that global brands would be accepted by the ShFE for delivery, traders said. A spokesman for nickel producer Sumitomo Metal Mining said the firm is watching how the market develops and studying whether to register its brands with ShFE, but had not yet taken any action.
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