Copper rose in London to the highest price in almost four months on speculation China may ease credit controls as growth slows, potentially bolstering demand prospects in the largest user of the metal.

China’s banking regulator is weighing a plan to relax capital requirements for lenders, delaying implementing the most stringent capital-adequacy ratios, four people with knowledge of the matter said. Copper imports into China reached a record high and fourth-quarter economic growth in the country topped economists’ estimates, figures showed this month.

Mr Wiktor Bielski an analyst at VTB Capital Plc in London said that “We continue to expect both restocking and renewed strong Chinese buying post-New Year to further underpin prices into.”

According to Barclays Capital, Concern that supply may fall short of demand has helped to support prices. The copper market will have a shortage of 363,000 tonnes this year.

(Sourced from Bloomberg)