Shanghai Futures Exchange copper closed the session up 2.3 percent at 39,080 yuan ($6,153) a tonne on Thursday as markets reopened after a week-long break. Copper prices have been supported by expectations of a mild improvement in seasonal demand and cutbacks to supply, despite ongoing worries over China's growth. "Chinese sentiment is not as good as other markets, so LME copper has been sold down following SHFE," a Singapore-based trader said.
Still, copper's prospects are looking up with top copper buyer, the State Grid, expected to pick up purchases into year end, Argonaut Securities said in a note. Sentiment had also brightened towards copper and China's economy, as shown by the swift recovery in the shares of commodities giant Glencore after a one-day dive of 30 percent late last month, it said. "Glencore's share price quick rebound reflects that market concern over a hard-landing is overdone. As one-third of earnings of Glencore come from copper, the share price recovery (also) eased concern on a possible copper inventory sale by Glencore."
Comments
Comments are closed.