Shanghai Futures Exchange copper pared early gains to close up 0.1 percent at 35,700 yuan ($5,478) a tonne on Thursday as persistent jitters over China's growth tempered support from soaring oil and a successful short-term debt refinancing by commodities giant Glencore. Prices have been hit by slow demand over the Lunar New Year, and global growth concerns that have flattened trade. But with factories ramping up ahead of China's seasonal demand peak in the second quarter, analysts say prices should begin to find support.
"We expect copper's supply and demand fundamentals, especially in Q1, to improve on the back of seasonal demand recovery from power grids and home appliance sectors, as well as resilient growth in the auto sector," Argonaut Securities said in a note. Miners have also cut production and China's smelters have pledged to curb output in the first quarter, adding to price support, it said.
A copper concentrates trader said there was good demand for shipments from late April to early May - traditionally the strongest season for copper demand in China. "It's not a problem to place shipments further out, but if you were trying to place anything for the next month, you might struggle," the trader said.
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