Copper prices motored higher during Wednesday afternoon trading on the London Metal Exchange (LME), recovering from deep early losses to end higher. "It has managed to come right back - there was a bit of a bear-trap for the shorts 'early-doors'. Also, I think the funds are looking to keep it even for the month-end," a trader said.
Others said the initial sub-$3,300 decline was not maintained, and with short-term fundamental sentiment uncertain, the market was ripe for a covering rally.
"It is coming not only to the end of the month, but the second quarter and the first half. It could go either way in the next couple of days," a fund source said.
Copper sentiment has become uncertain, with talk of large LME stock rises being offset by supply concerns in the United States, Chile and Zambia.
However, fundamentally copper remained tight, despite a 725 tonne stock rise overnight on the LME. With stocks at just 30,975 tonnes, or less than two days' worth of global consumption, there was little material available in case of looming supply disruptions.
Copper ended the kerb at $3,358 a tonne, a $3 gain from Tuesday's kerb close, and well above earlier lows around $3,280.
"Rumours have been bandied around for the last week that some off warrant material is coming into warehouse, and it looks like that is having an effect on the spreads," another trader said.
The cash/threes spread was around $244 backwardation, having eased in a 9-1/2 year peak of $280/290 backwardation last week.
Other metals initially fell with copper, before clawing back up towards the close to finish mixed.
Aluminium staved off a test of $1,700, and bounced back to finish $16 higher at $1,738.
Nickel similarly stabilised after recent steep declines, with last trade at $14,695, up $45.
Lead was down $8 at $931/932, while zinc gained $9.50 to $1,250, Tin rose $100 to $7,425.