Shanghai Futures Exchange copper firmed by 0.7 percent to 39,530 yuan ($6,212) a tonne on Tuesday after China's August trade data showed copper imports holding steady in the world's top metals user despite signs of broader struggles for growth. China's imports shrank far more than expected in August, falling for the 10th straight month and adding to global investors' concerns that the world's second-largest economy may be slowing more sharply than expected.
The country's copper imports, though, were flat to July and up 2.9 percent from a year earlier at 350,000 tonnes. "It's a positive sign. Within any recovery you want to see signs of a pick up in demand, a firming in premiums. We're seeing those imports pick up so that's relatively positive for copper," said Jonathan Barratt, chief investment officer at Sydney's Ayers Alliance.
China's top economic planner on Tuesday approved two railway projects with a total value of nearly 70 billion yuan ($11 billion) to hasten infrastructure projects to boost growth. Also helping to support copper were a series of supply cuts. London-listed mining giant Glencore said it planned to suspend 400,000 tonnes of output at its Katanga Mining unit in Democratic Republic of Congo and at Mopani Copper Mines in Zambia over the next 18 months.
But significant price gains are unlikely because supplies are still adequate and growth in demand is weak, particularly from top consumer China, analysts said. Also, the investment plans of Chile's state copper producer Codelco are in tatters as it faces delays to mine expansions and keeps at least one unprofitable project running with global copper prices plumbing multi-year lows. Elsewhere, China's aluminium exports dropped again, after global premiums collapsed this year, making shipments to global markets less competitive. Global prices had been depressed by a flood of semi-manufactured exports out of the country.