Chinese copper futures rallied on Monday alongside a jump in domestic spot prices and a gain on the London Metal Exchange (LME), traders and dealers said. The most-active May copper futures on the Shanghai Futures Exchange closed at 30,760 yuan ($3,717) a tonne, up 240 yuan from Friday's close. Combined volume on the domestic market fell to a moderate 86,930 lot from 183,820 lots on Friday.
Physical prices jumped an average of 335 yuan to move in a range of between 31,970 and 32,040 yuan a tonne, buoyed by a fall in copper stocks in Shanghai warehouses of 3,224 tonnes to 41,001 tonnes at the end of the week ended on Thursday.
"Strong spot prices helped copper futures rise today," said a Shanghai trader.
"But with both spot and futures prices now at high levels, many investors are reluctant to build heavy positions, capping trading volume."
Traders said London Metal Exchange gains lent a hand to the domestic rally.
Three-month copper futures on the London Metal Exchange traded at $3,232 a tonne on Monday, up from $3,191.50 at about the same time on Friday.
Shanghai aluminium futures were also buoyed by higher London Metal Exchange aluminium futures, which traded at $1,960.50 a tonne on Monday, up from $1,915.50 at the same time on Friday.
Shanghai's most-active May aluminium finished at 16,580 yuan per tonne on Monday, up 50 yuan from Friday's close.
A combined 16,842 lots changed hands, up from 12,922 lots.
Shanghai aluminium warehouse stocks fell 3,392 tonnes on the week to 85,502 tonnes on Thursday, exchange data showed.
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