Shanghai Futures Exchange copper edged up 0.3 percent to 47,100 yuan ($6,832) a tonne on Friday, with striking union members agreeing to return to work at the world's top copper mine, in Chile. China's refined metals imports were sharply lower in February, by 29 pct on the year for copper to 66 pct down for zinc, also spooking the market over the strength of demand. ANZ's Hynes said this was partly due to China's clamp-down on currency outflows and was not as bearish as it appeared.
In the short term, investors were jittery on prospects that President Donald Trump's healthcare bill would not pass, suggesting he may not be able to muster the backing needed to push through fiscal measures central to the US government's economic agenda. "There was a lot of exuberance at the start of the year about President Trump's pro-growth policies and certainly base metals benefited from that," said analyst Daniel Hynes at ANZ in Sydney. "Certainly the talk around the Trump care vote today and obviously the implications for other policies like tax cuts are probably enough to push investors to the sidelines," Hynes said.
"At the moment there is no fear of a lack of supply even though we have massive supply side issues across the board."