Shanghai copper futures closed up on Thursday, buoyed by heavy gains on the London Metal Exchange, but trade stayed thin ahead of a week-long holiday, traders said.
The most active contract, December, finished 140 yuan higher at 29,030 yuan ($3,508) on a thin volume of only 97,930 lots, though that was up from 78,318 lots on Wednesday.
Other contracts ended up between 50 yuan and 350 yuan. The Shanghai Futures Exchange will be closed from Friday for the annual National Day holidays, resuming trade on October 8.
The LME three-month contract jumped $54 to end on Wednesday's kerb session at $2,990 a tonne. Shanghai's December futures have jumped 9.5 percent from just two weeks ago, mainly propelled by the shortfall. There was now pronounced backwardation where nearby contracts is higher than distant ones reflecting tight spot supply, traders said.
Spot copper prices in Shanghai rose 50-100 yuan to move in a range of 30,950 to 31,050 yuan a tonne on Thursday, continuing a Bull Run over the past two weeks. The shortfall of copper on domestic markets is a result of slow imports from May to August, when local copper prices underperformed global markets, traders said.
Strong domestic demand, propelled by a racing economy, also helped. The price ratio between the Shanghai January contract and the LME three-months stood at 9.47 at the close of the Shanghai market on Thursday, down from 9.63 a day.
LME three-month aluminium rose to $1,810/$1,814 per tonne on Thursday's Asian trade, compared with $1,806 on Wednesday's kerb session.
Comments
Comments are closed.