The most-traded October copper contract on the Shanghai Futures Exchange slipped just under 1 percent to 38,890 yuan ($6,071) a tonne on Thursday after a sharp rebound in Chinese equity markets helped calm investors hit by worries over the country's faltering economy. China's major stock indices rose on Thursday, following on from a strong rebound on Wall Street.
The lift helped distance the benchmark London Metal Exchange copper contract further from the six-year lows plumbed earlier in the week amid heightened concerns China was headed for a hard landing. "We've seen Beijing move in and take more control over the economy and that's a positive for copper," said a Sydney-based trader. China is responsible for consumption of nearly half the world's copper.
ANZ Bank on Thursday downgraded its price forecasts for base metals, in particular its year-end targets, with its projected copper price slashed 10 percent to $5,400 a tonne. The biggest downgrades were in nickel, where weak demand has delayed the expected market deficit in 2015. Zinc has also underperformed against expectations, the bank noted. Elsewhere, the downgrades are in the order of 10 percent over the next 18 months.