Reuters reported that London copper crawled higher after recent losses, but metal prices were stuck in a tight range on caution ahead of this week's GDP data from top consumer China that is expected to yield fresh trading cues.

China's June trade data on Tuesday stoked anxiety about the strength of domestic demand in the world's second biggest economy as imports rose at only half the pace expected. Markets are now hoping that weak GDP numbers will herald another round of monetary easing and lift commodity prices.

An analyst with an international trader said that there has been a lack of trading direction lately ahead of China's GDP data and in view of a sluggish global economy. Many investors are just trying to cash in on short-term trends and this keeps trades within very narrow ranges.

Three month copper on the London Metal Exchange inched up 0.4% to USD 7,518.50 per tonne by 0724 GMT after climbing to a high of USD 7,537 earlier in the session. LME copper has dropped 4% over the last 5 sessions biggest 5 day loss in about two months. The most active October copper contract on the Shanghai Futures Exchange rose 0.1%t to CNY 55,150 per tonne.

The ShFE prompt-month July contract has been trading higher than forward month contracts but traders cautioned that the backwardation does not point to tightness in immediate supply as the exchange's copper stocks have been rising over the past three weeks.

A copper buyer said that recent copper data seems strange and conflicting because many investors are pausing in their tracks waiting for clearer trading cues. The buyers are holding back buying, which accounts for thin demand, while sellers are holding back from selling which accounts for the rising stocks.

Source - Reuters

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