November 14, 2012
The most active February copper contract on the Shanghai Futures Exchange fell 0.4 percent to close the day at 55,460 yuan ($8,900) a tonne, dragged lower by Chinese shares which ended near a 7-week low on state media reports that government curbs on the housing market would remain in place.
In copper physical markets, traders reported better domestic sales as recent low prices drew in bargain-hunters. Spot prices were trading at a premium to ShFE front-month prices of as high as 100 yuan, indicating stronger spot demand. “There has been a steady rise in domestic copper business lately. Imported copper sales have also stayed stable due to a recent improved arbitrage,” said a Shanghai-based trader. LME copper was trading 188 yuan lower than the most active ShFE copper price, but the discount was recently as large as 837.70 yuan, giving consumers an opportunity to import.