The most-traded October copper contract on the Shanghai Futures Exchange edged up by 0.2 percent to 49,120 yuan($8,001) a tonne as brighter prospects for the US economy were chilled by caution over China's stuttering property market, while a stronger dollar sapped a rebound from seven-week lows. Prices have been broadly underpinned by tight supply of metal. While many analysts expect fresh mine supply to feed into the market later this year, Morgan Stanley said a flood of new supply was unlikely.
"We think copper will continue to remain fairly tight...(given) supply growth essentially matches demand growth this year," said analyst Joel Crane of Morgan Stanley in Melbourne. Morgan Stanley sees copper heading towards the lower end of its $6,800-$7,200 range before rising higher.