Copper prices jump in China

BEIJING (Asian Metal) 10 Feb 09 – Tracking the upward movement of 3-month copper on LME on growing optimism about the economic recovery in China, copper futures on SHFE surged by its daily 5% on Monday, and spot copper prices jumped accordingly.

A trader in Shanghai with the sales volume of around 2,000tpm raised its copper prices by about RMB1,500/t (USD219/t) to RMB30,000/t (USD4,392/t) on Monday but concluded few deals at the high prices. “Supported by the rally of copper futures on London, spot copper prices rebounded sharply,” said the source.Asian Metal Copyright“The fundamentals for most of the base metals have not changed significantly and as such we expect any rallies to be rather fragile," said the source, adding that producers hold some stocks on hand in China.Asian Metal Copyright “However, the price increase is sustainable with rising inventories showing that the global demand remains weak.Asian Metal CopyrightBEIJING Asian Metal 10 Feb 09 – Tracking the upward movement of 3-month copper on LME on growing optimism about the economic recovery in China, copper futures on SHFE surged by its daily 5% on Monday, and spot copper prices jumped accordingly.Asian Metal Copyright”

The source analyzed that although the traditional bullish season for copper consumption is coming, whether China demand can drag up the global consumption or not is doubtful. “Therefore, we should be over-optimistic about the market trend”, said the source, adding that the prices may fluctuate at around RMB30,000/t (USD4,392/t) in domestic market in the near term.

A Gansu-based trader with the sales volume of 1,500tpm confirmed that spot copper prices rocketed by about RMB1,500-1,600/t (USD219-234/t) to RMB30,000-30,100/t (USD4,386-4,407/t) in Chinese market on Monday. “We closed no deal at the high prices, since buyers are watching the market,” said the source, attributing the price rise to the rebound of 3-month copper on LME.Asian Metal Copyright “We closed no deal at the high prices, since buyers are watching the market,” said the source, attributing the price rise to the rebound of 3-month copper on LME.Asian Metal Copyright

“The fundamentals for most of the base metals have not changed significantly and as such we expect any rallies to be rather fragile," said the source, adding that producers hold some stocks on hand in China. Along with increasing imported copper cathodes, the supply will become more abundant in the domestic market.Asian Metal Copyright “Supported by the rally of copper futures on London, spot copper prices rebounded sharply,” said the source.Asian Metal Copyright The source disclosed that the hold few stocks on hand.