Copper Futures in Shanghai Rise a Second Day as Stockpiles Fall
2005-04-18 03:16 (New York)
By Chia-Peck Wong and Meeyoung Song
April 18 (Bloomberg) -- Copper futures in Shanghai rose for
a second day after a decline in stockpiles last week increased
concern supply in China, the world's largest user of the metal,
may be insufficient to meet demand.
Stockpiles at seven warehouses registered in Shanghai fell
5.2 percent to 21,004 metric tons last week, equivalent to two
days of consumption in China. Analysts speculated that about
30,000 tons of copper had arrived in Shanghai last week.
``The supply in China is not high at all,'' Na Jianjiang, a
metals trader at Jinpeng Futures Co. Ltd., said in a telephone
interview from Beijing.
Copper for delivery in June rose as much as 460 yuan, or 1.4
percent, to 32,510 yuan a ton on the Shanghai Futures Exchange.
The contract gained 340 yuan, or 1.1 percent, to settle at 32,390
yuan ($3,913) when trading ended at 3:00 p.m. local time.
About 30,000 tons of copper may have arrived in Shanghai
last week, with another 30,000 tons of imports expected this
week, Barclays Capital said in an e-mail report on April 13.
The Shanghai Customs department doesn't disclose weekly data
on non-ferrous metal imports.
Comex
Copper for immediate delivery on the Changjiang Nonferrous
Metals Spot Market, a cash price benchmark, declined as low as
34,340 yuan a ton, from 35,170 yuan on April 15, as some traders
have ``released some stocks,'' Jin Weimen, an official at the
market's information department, said by phone from Shanghai.
``These stocks may be part of the 30,000 tons that were
reported to have arrived last week,'' he said.
The arrival of more copper in Shanghai this week may not be
enough to meet demand in China, where consumption of the metal
typically peaks during the second quarter, Jinpeng's Na said.
China's industrial production rose 17 percent in the two
months ended February, spurring manufacturers to buy more copper.
Shanghai futures prices reached a 12-year high on April 12.
On the Comex division of the New York Mercantile Exchange,
copper for delivery in May fell 1 cent, or 0.7 percent, to $1.435
a pound in after-hours trading at 2:59 p.m. Singapore time as the
U.S. dollar gained against the euro. A stronger dollar makes
dollar-denominated metals more expensive for buyers using other
currencies.
`Stronger Dollar'
``Copper, gold and all other non-ferrous metals on the Comex
are falling because of the stronger dollar, while copper in
Shanghai is moving on supply concerns,'' said Ro Seung Hwan, an
assistant manager at Tong Yang Futures Trading Co.'s
international business team in Seoul.
The dollar may rise further against the euro on speculation
a government report will show U.S. wholesale prices rose last
month, indicating the Federal Reserve will continue to raise
interest rates to subdue inflation. The Federal Reserve has
raised rates seven times since June.
The dollar gained 0.3 percent to $1.2887 against the euro
at 12:03 p.m. Singapore time, from $1.2924 late April 15 in New
York according to EBS, an electronic currency dealing system.
Copper for delivery in three months on the London Metal
Exchange traded at $3,176 a ton at 3:00 p.m. Singapore time. It
rose 1.5 percent to close at $3,182 on Friday.
--Editors: J.Lee, White, Shirodkar. |
