Shanghai copper rises

Shanghai copper gains
Shanghai copper

October 12, 2013

The most traded January copper contract on the Shanghai Futures Exchange closed up by 0.47 percent at 51,650 yuan ($8,400) a tonne on Thursday. “There has been quite a bit of improvement in overnight markets in the US on the hope of a resolution, but so far there is insufficient detail. We are not out of the woods yet,” said Thomas Lam, chief economist at DMG & Partners Securities in Singapore.

“Metals fundamentals might soften in the fourth quarter, but I don’t think it will be dramatic. The bigger driver is Fed policy, and if the Fed decides to taper at the December meeting it could lead to a stronger dollar, so we may see some softening in base metals prices as a result,” he added. Metals demand continues to be fanned by growth in top consumer China where premiums for metal in China’s bonded zones have climbed $5 to $175-$205 this week, according to China price provider Shmet.

China’s economic growth should exceed 7.5 percent this year, deputy central bank governor Yi Gang was quoted by Xinhua as saying, the latest expression of confidence from Beijing that the world’s No 2 economy is steadying, ahead of third quarter GDP figures to be released next week. Courtesy: Reuters

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