Shanghai copper up

October 19, 2013

Shanghai copper gains
Shanghai copper gains

The most-traded January copper contract on the Shanghai Futures Exchange closed up 0.3 percent at 52,250 yuan ($8,600) a tonne on Friday, supported by data showing China’s economy grew as forecast in the third quarter, although concerns its upward momentum may be short-lived limited price gains. China’s economy grew 7.8 percent in July-September, its fastest pace this year, as firmer foreign and domestic demand lifted factory production and retail sales.

China is the top consumer of copper, accounting for 40 percent of global copper use. But the outlook going forward is not as rosy amid volatile global demand and Beijing’s reforms aimed at more sustainable growth, analysts say. “The strong GDP number implies solid and growing demand for copper,” said Helen Lau, senior metals analyst at UOB Kay Hian Securities in Hong Kong. “But I haven’t really changed my bearish view for 2014 and 2015 because we expect China’s industrial production growth to slow as the growth becomes less investment-driven.” Courtesy Reuters

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