Shanghai Futures Exchange copper climbed 0.7 percent to 35,710 yuan ($5,493.68) a tonne on Tuesday led by firm oil prices and brighter company earnings, while investors looked for further Chinese measures to cement a recovery after tepid economic growth in April. Aluminium prices have caught a lift on signs that Chinese smelters have curtailed production, paring a ballooning surplus.
Official data showed China's output in April fell 1.2 percent on the year to 2.57 million tonnes. "The data suggests that smelter restarts onshore are sluggish," StanChart said, noting a near 10-percent price rise year-to-date. "(Still) smelters' ability to restart has been limited either by their lack of access to credit or by local governments indicating that a restart would see the operator lose access to subsidies provided to currently operating capacity."
In Shanghai, aluminium prices rose 2.2 percent. China will take steps to stem the outflow of processing trade businesses to other countries by encouraging them to move to its central and western regions where labour costs are lower, a commerce ministry spokesman said.