Shanghai copper rallied 2.5 percent on Monday to its highest since May 2007, while London futures pushed to within $80 of a record high ahead of week-long Chinese holidays this week. Shanghai's most-active copper futures contract, April, rose 2.5 percent to touch 73,610 yuan a tonne.
Shanghai copper closed at 73,420 yuan. Shanghai copper rose 2.2 percent in January, outperforming London, which on track for a rise of around 0.6 percent. "Copper has turned highly bullish again. There was a big push from Shanghai this morning ahead of the holidays. Open interest has come down since the start of the year, but it's still quite high this close to a holiday," a trader in Shanghai said.
"I wonder if there are short positions out there, closing out ahead of the Lunar New Year. With London getting back near record highs, it would make sense to close them out." Chinese markets will close from Wednesday for the week-long Lunar New Year celebration. Typically, investors in the world's top metals consumer close positions ahead of the break on worries of a big move in London while the domestic market is shut. Tin rose $200 to $29,800, having come within $40 of Friday's record $30,040, its sixth in as many sessions.
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