(Bloomberg) -- Copper rose after a jump in withdrawals from London Metal Exchange warehouses in Gwangyang, South Korea.

Data published by the LME on Monday showed 8,000 tons of cathode warrants were canceled, causing copper prices to erase previous losses. The orders come after stockpiles in China have also started to fall, with market participants trying to gauge whether a meaningful demand recovery in the country is underway after a tepid first half of the year.

While readily available inventories remain at high levels after surging more than 70% since May, an industry gathering in Hong Kong last week underlined the gulf in views between physical traders of copper — who are seeing weak buying appetite among their customers — and hedge fund players. The latter have piled big bets into the metal, with an eye on its importance in conducting electricity for artificial intelligence data centers.

LME copper prices rose 0.9% to $9,681 per ton by 2:50 p.m. in London. They have gained 13% since the start of the year. All other metals rose, with aluminum and zinc trading 0.8% higher. 

--With assistance from Guillermo Molero.

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