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(Bloomberg) -- Copper held the bulk of the biggest one-day advance in more than three years, as the metal benefited from a renewed wave of interest in commodities and investors assessed the outlook for Chinese demand.

Futures traded above $13,420 a ton in London after surging 4.6% on Tuesday for the biggest gain since November 2022. Base and precious metals have moved in tandem in recent months, with gold and silver rallying on Wednesday after a steep drop earlier in the week spurred by a rise in the US dollar.

Copper — used in pipes and batteries — has risen by about 8% this year, hitting a record above $14,500 last week. The gains have been underpinned by signs that governments could move to secure supplies, and by broad investor optimism about the outlook for demand.

Prices spiked on Tuesday after a state-backed industry group in China called for authorities to boost strategic reserves of the metal, as well as on a return of buying by Chinese manufacturers.

Supplies are set to rise further in the top metals consumer. Copper traders pulled extra spot cargoes from Africa into the domestic market, capitalizing on a brief arbitrage window last week, according to traders with knowledge, who declined to be named because they are not authorized to speak to media.

The China Nonferrous Metals Industry Association also forecast that the country’s refined copper output would rise about 5% this year, following a 10% surge in 2025, according to a statement. Local smelters — which produced 47% of the world’s refined metal last year — have been resilient despite a relentless expansion of capacity that’s triggered a collapse in processing fees.

The association’s outlook signals no major output cuts are expected from Chinese smelters, said Xu Wanqiu, an analyst at Cofco Futures Co.

Daily refined copper spot trading volumes across China totaled 28,900 tons on Tuesday, according to a survey from consultancy Mysteel Global. While that’s down 24% from a three-month peak the day before, the volume is still relatively high for the period since November.

In industry news, Glencore Plc has agreed to sell 40% of its stakes in two African copper businesses to a US government-backed group as Washington pushes for more control over critical minerals. Orion CMC, a new venture led by Orion Resource Partners, and with backers including the US International Development Finance Corp., signed a memorandum of understanding to buy stakes in copper-cobalt mines in the Democratic Republic of Congo.

Copper shed 0.4% to $13,427 a ton on the London Metal Exchange at 7:26 a.m. local time, while other metals were mixed, with nickel rising.