Shanghai copper futures rose on Thursday, supported by strong domestic spot copper premiums despite lower prices overnight on the London Metal Exchange.
"The premium on the spot copper market in China is telling us the tone of copper is still stronger in the world's largest market than in other markets," said Cai Luoyi, analyst at China International Futures Corp in Shanghai. The January copper contract, the most active in Shanghai, rose 0.48 percent to 64,310 yuan a tonne.
Spot copper traded between 65,300 yuan to 65,700 yuan a tonne on Thursday in eastern China, up 550 yuan from Wednesday. Copper on the LME fell on Wednesday after failing to hold above the $7,000 a tonne mark. The mood was dampened after sluggish US data from the final reading of the November index of consumer sentiment and the Labour Department's jobless report for the week ending November 18.
Three-month copper held steady at $6,930 per tonne on Thursday, against $6,900 at the kerb close in London on Wednesday. It was helped by firmer prices of oil and precious metals.
Oil prices were steady after shedding gains made earlier in the week following a massive build in crude stocks in the United States. The price inched up 5 cents to $59.29 a barrel on Thursday. Aluminium futures in Shanghai rose, with the most active January contract ending at 20,150 yuan per tonne, up from 20,110 yuan at Wednesday's close. LME aluminium fell to $2,655 per tonne, from $2,670 at the kerb close on Wednesday.
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