China Copper Futures Settle Up In Quiet Mkt On LME

Copper futures traded on the Shanghai Futures Exchange finished higher Monday in an uneventful session, taking their cue from Friday's modest gains in London Metal Exchange copper, traders said.

The most active January 2007 contract settled CNY130 higher at CNY67,790 a metric ton, after trading between CNY67,400-CNY68,050/ton.

Total trading volume for Shanghai copper futures fell to 20,544 lots, from 30,310 lots Friday. One lot is equivalent to five tons.

Jerry Wei, an analyst at Star Futures, said the short-term outlook for copper remains steady at current levels on a lack of strong leads, with Shanghai most likely to simply track the LME.

"Last Friday, LME (copper) looked quite silent, and I don't think there will be any change to that today."

He expects the benchmark to trade in a range of CNY68,000-CNY70,000 in the short-term.

Spot copper remains at a premium to futures, though the premium has narrowed, traders said. At the Changjiang Nonferrous Metals Trading market, spot copper was quoted between CNY69,000-CNY69,200/ton, down slightly from Friday's range of CNY69,200-CNY69,400/ton.

Three-month copper on the London Mercantile Exchange rose $85 to end the late kerb Friday at $7,330/ton.

It was quoted slightly higher when the SHFE closed, up $5 at $7,335/ton.

SHFE aluminum futures put in a stronger performance than copper Monday, supported by LME aluminum gains Friday as well as some fresh buying after last week's net losses.

A higher tax on aluminum exports as well as a cut in Aluminum Corp. of China's alumina price triggered several days of heavy selling on the SHFE last week.

That news is now past, and the market is refocusing on demand, which looks strong, especially for the November contract, Wei said.

The benchmark January 2007 contract rose CNY230 to settle at CNY20,080/ton, after trading between CNY19,870-CNY20,250/ton.

Total trading volume for all aluminum contracts fell to 145,616 lots, from 161,788 lots Friday.

China's futures markets are off-limits to foreign investors.

Monday's closing prices in yuan a metric ton versus LME late kerb prices Friday in dollars a metric ton.

 
              Copper   Change    Aluminum      Change
Shanghai  Jan 67,790   Up 130    Jan 20,080    Up 230
LME       3Mo $7,330   Up $85    3Mo $2,789    Up $33