Shanghai copper rose nearly 1 percent on Tuesday and London copper edged higher, supported by a rebounding euro, but prices are likely to remain in a narrow range as investors wait for clear direction. The euro held its ground on Tuesday after rebounding from a three-week low against the dollar, helped by an improvement in risk appetite following gains in US stocks but still stymied by squabbling over Greece.
"Shanghai copper is quite strong today, but the market lacks a clear direction - one day it firms up, the second day it falters at any slightly bearish news," said Lin Yuhui, deputy general manager of Jinhui Futures. "Investors are waiting for something that can stimulate the market.
As fundamentals are generally supportive, prices would more likely break above the current range than below." Shanghai's benchmark third-month copper futures contract rose 1 percent to 60,090 yuan a tonne by 0225 GMT. Three-month copper on the London Metal Exchange extended gains made in the previous session, up $35 to $7,485 a tonne. Shanghai copper's premium over LME copper widened to 308 yuan, still not enough for imports to be profitable.