SYDNEY/MELBOURNE: The most-traded copper contract on the Shanghai Futures Exchange rose 1.4 percent to 48,560 yuan ($7,195.14) a tonne on Tuesday after unexpected strength in China’s economy and a weaker dollar fanned upside technical momentum. ShFE nickel ended 3.2 percent higher.

Sentiment towards copper from the physical market has improved as fabricators in China have replenished their inventories, Citi said in a report.

“Bonded warehouse premiums returned to $72 a tonne, the highest in eight months, and ShFE inventories also saw healthy draws. That said, we believe there is more inventory clearing work to be completed before imports could pick up sustainably,” the bank said.

Lending support, the dollar is near 13-month lows, leaving dollar-denominated commodities such as copper cheaper for holders of other currencies.—Reuters