The most-traded July copper contract on the Shanghai Futures Exchange fell 0.8 percent to 46,380 yuan ($7,500) a tonne on Wednesday after a China state agency said the window for stimulus measures was narrowing. But modestly improving demand has helped cushion prices. Copper prices have recovered by around 5 percent from 3-1/2-year lows plumbed on March 19 as Chinese demand has climbed in the seasonally strongest second quarter, although swelling mine supply this year is expected to keep a lid on prices.
"I don't think the market will chase prices higher given the Chinese story still has a lot of question marks," said analyst Dominic Schnider of UBS Wealth Management in Singapore. China is the world's top user of refined copper, accounting for around 40 percent of consumption. "It's back to the old story that mine supply is still growing faster than demand," he said.