Shanghai Copper Rises Near Four-Month High on Demand From China
2007-04-03 04:02 (New York)
By Xiaowei Li
April 3 (Bloomberg) -- Copper in Shanghai rose for a third
day, climbing to its highest in almost four months on signs of
increasing demand from China, the world's largest user. London
copper advanced above $7,000 a ton for the first time this year.
Copper stockpiles booked and due for delivery from London
Metal Exchange warehouses, known as ``canceled warrants'', rose
for a second day yesterday, according to the exchange. China's
demand may increase by up to 10 percent this year, Charlie
Sartain, chief executive for copper at Xstrata Plc, the world's
fifth-largest miner, said yesterday.
``Copper is expected to rise further attempting new highs on
the improved demand outlook and increased investors' interest,''
said Tang Yijun, a trader at China International Futures
(Shanghai) Co., today.
Copper for delivery in June on the Shanghai Futures Exchange
rose 660 yuan, or 1 percent, to settle at 64,030 yuan ($8,283) a
ton today, the highest finish since Dec. 12.
Metal for immediate delivery in Changjiang, Shanghai's
biggest cash market, rose as much as 440 yuan, or 0.7 percent, to
63,420 yuan a ton today.
Copper for delivery in three months on the London Metal
Exchange rose 0.9 percent to $7,030 a ton at 3:48 p.m. Shanghai
time, the highest since Dec. 6.
Stockpiles monitored by London, New York and Shanghai
exchanges dropped for a third straight week to 270,414 tons March
30, the longest string of declines since September. Yesterday's
rise of 3,000 tons had a limited impact given the rise in
canceled warrants by 2,525 tons to 14,575 tons, said Tang.
China Demand
Copper demand in China is expected to grow 21 percent to
between 4.5 million and 4.7 million tons by 2010 from 3.8 million
tons in 2006, UBS analyst Robin Bhar said in a report March 30,
citing China Minmetals Corp, the country's biggest metals trader.
London aluminum rose 0.7 percent to $2,775 a ton at 3:54 p.m.
Shanghai time. Zinc added 1.7 percent to $3,204.50 a ton.
Shanghai aluminum for June delivery settled 0.2 percent down
at 19,220 yuan a ton today. Shanghai zinc for July delivery fell
1.8 percent to settle at 28,810 yuan a ton.
A futures contract is an obligation to buy or sell a
commodity at a fixed price for delivery by a specific date.
--With reporting by Xiao Yu in Beijing. Editor: Killen (wjp) |
