Shanghai Futures Exchange copper rose 0.7 percent to 47,360 yuan ($6,844) a tonne on Tuesday by expectations of stronger demand for the metal after China, the world's biggest copper user, reported better-than-forecast industrial output data and fixed-asset investment figures. China issued a raft of upbeat data on Tuesday showing the economy got off to a strong start to 2017, supported by strong bank lending, a government infrastructure spree and a much-needed resurgence in private investment.
China's factory output rose 6.3 percent in January and February from the same period a year earlier, the country's National Bureau of Statistics reported on Tuesday. Production was estimated to grow 6.2 percent. Fixed-asset investment grew 8.9 percent, also beating expectations.
China accounts for just under half of global copper demand. Improvement in manufacturing fed a brighter outlook for prices as several disruptions at copper mines have constrained the outlook for supply. "Supply side issues should continue to support metal prices; however investors are likely to remain cautious leading into the FOMC meeting and other key economic releases," said ANZ in a report.
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