Copper futures rose in London on Thursday, trading around 1.5 percent short of record highs, with sentiment supported by stronger-than-expected jobs and service sector data from the United States.
Shanghai's third month contract rose 1.2 percent to 71,610 yuan, having touched a 43-month high of 72,460 yuan on Tuesday. "Chinese buyers are still not that interested in copper at these prices yet, but they may warm up after the (Lunar) New Year," the Singapore trader said. "Export markets may be improving - they are not a huge part of many businesses - but when added to the strong domestic demand picture, it looks like we will see a return of Chinese consumers."
Shanghai copper continued to trade at a discount to London, with prices in China around 2,800 yuan cheaper than on the international market, accounting for China's 17 percent VAT, but down from earlier this week, when the difference yawned above 3,000 yuan.
Comments
Comments are closed for this article.