Shanghai Futures Exchange copper climbed by 0.3 percent to 35,960 yuan ($5,521) a tonne on Wednesday as a softer dollar offered some reprieve, despite worries over renewed weakness in China's economy that have pummelled steel and iron ore prices. In other metals, Shfe aluminium and zinc rebounded near 2 percent after steep drops earlier this week.
Among other metals, Shanghai tin edged up on Wednesday after falling 2.5 percent on Tuesday for the second-biggest one-day drop this year as China speculators cut holdings. LME tin fell 0.4 percent. "A hefty fall in SHFE Tin has considerably weakened Chinese domestic tin prices compared to LME Tin, which if continues could well prompt some exporting," said broker Triland in a note.
"Futures prices have gone up too far and too fast, so some consolidation is very healthy," said analyst Helen Lau of Argonaut Securities in Hong Kong. "Demand (growth) may not be as fast as in March after the Chinese new year, but the case for recovery is growing." "Today there has been a modest bounce in the prices as shorts no doubt have squared up when they saw the buying coming at the end of yesterday's session and possibly feel the markets have done enough on the downside for the moment," said Kingdom Futures in a note.
In supportive news for copper, Japan's JX Holdings Inc said on Wednesday its Caserones copper mine in Chile ran at a utilisation rate of about 80 percent in March, missing its earlier target of full utilisation throughout the month.