Shanghai Futures Exchange copper traded at 37,360 yuan ($5,779) up 1.2 percent on Wednesday but down from an intraday high. China's industrial output surprised to the upside last month, while rising property prices suggested an economic recovery is taking root. "Overall, everyone is still looking at China - the March results are quite good you can see signs of economic stabilisation," said analyst Helen Lau of Argonaut Securities in Hong Kong.
"The USD weakness and oil price rebound were probably the two major drivers for yesterday's move in copper prices. On the demand side, we think it will be sustainable through second quarter." A reversal in the oil price soured sentiment towards commodities. Crude futures fell on Wednesday, following a more than 3 percent gain in the second before, after Kuwaiti oil workers ended a three-day strike that had cut the nation's crude output by around half, with worries about an over-supplied market returning to the fore.
Elsewhere, confidence among Japanese manufacturers rose in April but is expected to worsen again in the coming three months, a Reuters poll found on Wednesday, reflecting concerns about the yen's rise and tepid overseas demand. In news, mining giant BHP Billiton followed rival Rio Tinto in trimming its iron ore output guidance on Wednesday, helping to ease pressure on an oversupplied market.
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