LME copper for three-month delivery rose slightly on Thursday amid expectations that stimulus measures in China, a major consumer of metals, will boost demand.
Copper for delivery in the LME three-month delivery rose 0.16 percent, or $16, to $10315.00 a tonne at 17:00 London time.
The National standing Committee meeting held on the 13th pointed out that in view of the changes in the current situation, large banks with a higher level of provision are encouraged to reduce the reserve ratio in an orderly manner and timely use monetary policy tools such as reserve reduction.
China accounts for nearly half of global consumption of about 24 million tons of copper.
"Chinese policymakers say they will introduce more stimulus measures, which supports prices," said Wenyu Yao, an analyst at ING.
"the COVID-19 epidemic is disrupting economic activity or causing the authorities to take more aggressive stimulus measures than previously expected."
Analysts at ANZ said its copper demand indicators showed copper consumption remained good due to increased demand in the power sector.
Copper stocks at LME warehouses have fallen 17 per cent so far this year. Copper stocks rose by 3675 tonnes to 110675 tonnes, according to the latest data.
The Chilean Copper Commission (Cochilco) on Thursday raised its 2022 copper price forecast to $4.40 per pound because of a supply crunch caused by the conflict between Russia and Ukraine.
The committee said the increase in copper prices was affected by economic factors, mainly due to "reduced inventories in the metal market and the risk that global supply could not meet expectations".
Cochilco expects copper prices to be $3.95 a pound in 2023, up from $3.80 in January.
The committee expects Chile to produce 5.78 million tons of copper in 2022, up 2.6 per cent from a year earlier.
Zinc for three-month delivery fell 1.11 per cent to $4412.00 a tonne as profit-taking after supply concerns and shrinking inventories helped push it to its highest level in more than a month.
