Copper futures traded on the Shanghai Futures Exchange settled mostly lower Tuesday, pressured by a weak price outlook for three-month London Metal Exchange copper.
The benchmark February 2007 contract gained CNY130 to settle at CNY62,910 a metric ton, after trading between CNY62,560/ton and CNY63,240/ton.
Overall trading volume rose to 30,044 lots from 24,936 lots Monday.
One lot is equivalent to five tons.
"High cash premiums lent support to prices of nearby contracts, but concerns that three-month LME may test its downside further weighed on forward contracts," said a trader.
On the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, spot copper was quoted at CNY64,800-CNY65,000/ton, higher than Monday's CNY64,500-CNY64,700/ton.
"LME three-month lacks the momentum to rise, without positive sentiment," said the trader.
A strike in Chile, though positive to the market, can't offset the negative impact brought by the increase in LME stocks, he added.
Striking workers at Xtrata PLC's Altonorte copper smelter in Chile on Monday afternoon received a sweetened contract offer but later voted against it Monday evening.
LME copper stocks have risen around 10% since the beginning of December to 173,250 tons Monday.
Three-month LME copper rose $35 to end the late kerb Monday at $6,665/ton. It was quoted higher at $6,700/ton around 0700 GMT, when Shanghai market closed.
Shanghai's aluminum futures settled slightly higher, taking their cues from three-month LME aluminum.
The benchmark February 2007 contract settled CNY40 higher at CNY20,550/ton, after trading between CNY20,540/ton and CNY20,590/ton.
China's futures markets are off-limits to foreign investors.
Tuesday's closing prices in yuan a metric ton versus LME late kerb prices from Monday in dollars a metric ton:
Copper Change Aluminum Change
Shanghai Feb 62,910 Up 130 Feb 20,550 Up 40
LME 3Mo $6,665 Up $35 3Mo $2,787 Dn $15
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