London - Copper slipped on Tuesday from a one-month peak hit in the previous session as investors again grew concerned about further forecasts of a supply glut.
Steady buying from top consumer China, however, kept a floor under prices.
The local media in China reported that the government is looking to increase investment in railway projects as it aims to ensure annual economic growth does not sink below 7 percent.
The report helped push world shares towards five-year highs, but was not enough to propel copper past the one-month peak, as analysts continue to bump up their surplus supply forecasts for this year and next.
Three-month copper on the London Metal Exchange shed 0.68 percent to trade at $6,981.25 a tonne at 0925 GMT. Copper on Monday reached its highest level since June 18 at $7,053 a tonne.
“There's still some downside to go with copper. You always get these brief lifts when China announces stimulus, but they generally are quite short lived because fundamentals are not in favour of higher copper prices,” said Sucden analyst Kashaan Kamal.
Data out Monday showed China's refined copper imports rose 11.04 percent in June from the same period last year. Also lifting sentiment, China's central bank announced on Friday that banks could lend at any rate they wanted.
China consumes around 40 percent of the world's copper. Economic growth in the country slowed to 7.5 percent in the second quarter, from 7.7 percent in the first quarter, and investors fear it slipping further still this year.
In industry news, Wall Street's multibillion-dollar commodity trading operations will be put under the political spotlight on Tuesday as a powerful U.S. Senate committee questions whether commercial banks should control oil pipelines, power plants and metals warehouses. -Reuters