Shanghai copper hit a 33-month high on Wednesday, before the rally fizzled on weakness in the equity market, but an upward trend in prices is expected to stay on supply concerns. Shanghai's benchmark third-month copper rose to 70,000 yuan a tonne in early trade, its highest since early March, 2008. It closed down 0.8 percent at 68,700 yuan ($10,318) a tonne.
"At LME, there is a lot of resolute buying. While in Shanghai, the momentum is not as strong, affected by the sluggish stock market and the fact that liquidity is tight at the end of year," said a Shanghai-based trader. LME copper stood at a premium of 3,789 yuan over Shanghai, from 3,064 yuan on the previous day.
The upward trend in copper is expected to remain in place into 2011, after LME copper staged a 26 percent year-to-day gain, on anticipation of tighter supply, traders and analysts said. Shanghai aluminium rose to a one-month high of 16,765 yuan a tonne, before ending up 0.3 percent at 16,685 yuan.
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