Futures News
- Shanghai News
Date: 27-Feb-2007 Sources: (Shenzhen Daily)
SHANGHAI copper futures rose by their 4 percent limit when the market reopened after the weeklong Spring Festival holiday yesterday, while London futures continued to build on last week's rally.
Shanghai copper hit 57,400 yuan (US$7,407) a ton, up 4 percent from the settlement price of 55,200 yuan Feb. 16.
London Metal Exchange (LME) copper futures have risen 8 percent over the past week and were trading at US$6,350 a ton yesterday morning, around their highest since the start of this year. Copper closed at US$6,306 Friday after prices surged US$345 Thursday.
'There was a lot of talk before the break about the return of Chinese buying when the market re-opened,'a dealer in Shanghai said.
'With Shanghai limit up, Chinese buyers are being forced to use the LME and prices will probably head higher,'the dealer said.
Copper, which in early February was down as much 17 percent from the start of the year, is now showing a net gain for the first time in 2007.
'The barrier for London copper is US$6,500. It may climb above it if Chinese buying is strong,'said analyst Cai Luoyi at China International Futures in Shanghai.
'I expect copper prices will see a bigger rise in China's physical market as there are no trade limits,'he said.
Shanghai spot copper was up 3,925 yuan at 59,500 yuan to 59,900 yuan.
'The market is looking pretty keen. Last week the funds were hopping back in, either through baskets of commodities or by buying directly. There was no news, just a general improvement in sentiment,'a dealer said.
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