BIZCHINA / News |
Copper futures climb on rally, speculationBy Zheng Lifei (China Daily)Updated: 2007-02-27 09:33 Copper futures in Shanghai surged by their daily limit of 4 percent yesterday, helped by a price rally in London and speculation of increased domestic demand. Copper for delivery in April, the most actively traded contract on the Shanghai Futures Exchange, climbed 2,220 yuan to hit 57,720 yuan a ton, the highest in a month yesterday, the first trading day after the week-long holiday. A futures contract is an obligation to sell or buy a commodity at a fixed price for delivery by a specific date. "It is almost a standard phenomenon that copper prices surge after the week-long Lunar New Year holiday," said Cai Luoyi, head of the research department at China International Futures Co (Shanghai). "The end of the holiday also signals the coming of the peak (copper) consumption season, which also helps lift the buying sentiment," the analyst said. Copper and copper products imports in China, the world's biggest copper consumer, surged 44 percent in January from a year earlier, according to Chinese customs figures. At the same time, Chinese imports of refined copper products last month are estimated at 132,000 tons and may hit 150,000 tons this month, double the average monthly imports of 69,000 tons in 2006, Australia's Macquarie Bank Ltd said in an earlier report. The copper price surges in Shanghai, analysts said, were also pushed up by the recent price rally on the London Metal Exchange (LME). "The strong price upswing in London is a major factor behind the price surges in Shanghai," said Ma Xi, an analyst at Shanghai Jinyuan Futures Co. Copper prices, which have slumped about 28 percent from last year's record highs, rose 8.5 percent to $6,306 a ton on the LME last week, the biggest weekly gain since July. Copper for delivery in May on the LME rose 0.9 percent to $6,365 a ton yesterday afternoon in Shanghai local time. The copper spot price also rose yesterday in Shanghai. Copper for immediate delivery in the Changjiang market, Shanghai's biggest spot market, surged as much as 5.5 percent to 59,300 yuan a ton yesterday. The copper spot price, analysts said, may rise even further. "The spot price may even climb in the future as there are no trade limits on it," Cai at China International Futures Co said. Aluminum for May delivery, another metal futures contract traded in Shanghai, increased as much as 420 yuan to close at 20,220 yuan a ton and traded at 20,310 yuan yesterday. Aluminum for December delivery surged 650 yuan to close at 19,400 yuan a ton yesterday. (For more biz stories, please visit Industry Updates)
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