Shanghai copper posts gains

Shanghai copper futures jumped 2.5 percent on Thursday after strong gains in London metals in the previous session and as confidence returned to equity markets. Shanghai copper for May delivery was at 57,860 yuan ($7,479) a tonne on Thursday, up 1,400 yuan or 2.48 percent from Wednesday's close.
"Traders are interested in buying Shanghai copper as the recent move indicates an upturned in futures prices, although ample supplies of spot copper are weighing on physical premiums," said analyst Li Rong at Great Wall Futures in Shanghai.
Spot copper was up 1,175 yuan at between 57,850 yuan and 58,000 yuan. The premium for cash copper over the May contract was nearly flat on Thursday, down from more than 2,000 yuan one month ago.
Copper gained nearly 3 percent in London on Wednesday and other metals also perked up as wary investors returned to recovering financial markets. Three-month copper on the London Metal Exchange was quoted $10 higher at $6,150 a tonne. "It appears that most of the panic is over.
The sell-off may have been a little too aggressive. In terms of fundamentals, there hasn't really been a huge change," said Gerard Burg, economist at National Australia Bank. "We have been seeing some evidence that apparent consumption of copper in China is picking up. Copper, being the traditional driver of base metals prices, should bring others higher with it," Burg said. Shanghai aluminium for May delivery was 80 yuan higher at 19,680 yuan.
LME aluminium was lower at $2,722 a tonne, after closing at $2,730 on Wednesday. In Shanghai's cash market, primary aluminium was traded between 19,550 yuan and 19,580 yuan a tonne. "Weakening spot prices due to increased availability have not brought down the futures price," Great Futures' Li said. "Traders all agree that Shanghai aluminium futures should move between 19,000 yuan and 20,000 yuan, unless the fundamentals change," he said.
Three-month nickel was indicated at $41,850 after gaining nearly 4 percent on Wednesday to $42,000/42,005 a tonne. On Wednesday, prices hit a record $42,350 and are up by about 25 percent since the start of this year. "Nickel remains very tight. There have been delays in projects that were supposed to come onstream this year," Burg said.