The most-traded April copper contract on the Shanghai Futures Exchange was up 0.64 percent to 59,880 yuan ($9,500) a tonne on Thursday. "The market is digesting the supportive PMI numbers, which have confirmed that industrial activity looks considerably better compared to Q4 last year, but there's some uncertainty, especially over the funding stress in Europe," said Stefan Graber, a Credit Suisse Private Banking analyst based in Singapore.
"In China indicators tell us that physical demand is not pointing towards strengthening. A positive US payrolls number on Friday to follow up on the PMI figures could line us up for a good week, but some retracement or at least consolidation for metals looks more likely." Front-month Shanghai copper was traded at a 700 yuan discount against the April contract, from a premium during August to December, flagging a lack of nearby appetite for metal.
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