The most-traded July copper contract on the Shanghai Futures Exchange climbed 1.1 percent to 46,260 yuan ($7,455.04) a tonne on Wednesday, while ShFE zinc and lead also climbed more than 1 percent. China's economy fuelled hopes of further easing in the world's top metals user, soothing concerns over copper demand. China's factory output, fixed-asset investment and retail sales all missed estimates, reinforcing expectations that Beijing will have to ramp up its efforts to boost its cooling economy.
And there are signs that Chinese steps on the economy may already be having an effect. Executives at nearly a dozen listed Chinese developers say they will ramp up investment in property this year thanks to interest rate cuts already announced by Beijing. "The rate cut is a continuation of the clear policy that they embarked on a year ago. It means that Beijing is attempting to put a floor on the property market, which could ultimately slow the deterioration in demand-growth in metals," said analyst Joel Crane of Morgan Stanley in Melbourne. Construction and linked sectors account for around 30 percent of copper demand in China.