Copper prices rose on Wednesday after better-than-expected manufacturing activity data from China supported demand hopes.
The manufacturing purchasing managers' index rose to 52.6 last month, the highest level since April 2012, the National Bureau of Statistics said Wednesday. The non-manufacturing index, which measures activity in services and construction, improved to 56.3. Both indices beat economists' expectations.
"The overall trend still points to a solid recovery in early 2023," said Zhou Hao, chief economist at Guotai Junan International.
"The decent PMI data provides a positive signal for the upcoming National People's Congress," he said, expecting the bbb to roll out further supportive policies to consolidate the economic recovery.
Copper for May delivery hit $4.16 a pound ($9,152 a metric ton) on Comex in New York, up 1.9% from Tuesday's close.
Iris Pang, chief economist for Greater China at ING, said in a note that China is expected to target GDP growth of 5.5-6% this year at the National People's Congress, which opens on March 5.
Ing expects infrastructure investment to become the second largest engine of China's economic growth in 2023, after consumption.
