Shanghai Futures Exchange copper climbed 0.2 percent to 35,600 yuan ($5,414) a tonne on Thursday Metals volumes are expected to dwindle into Lunar New Year which will see the ShFE halt overnight trading from February 5, before resuming trade on February 15. "We are still 10 days out (from the Lunar New Year) and it is dead," said a trader in Singapore.
Expectations for further monetary easing were also supporting metals. The European Central Bank is likely to cut its deposit rate again in March, according to a majority of economists in a Reuters poll who also said there was an even chance it would increase its monthly asset purchases. China's MMG Ltd flagged on Thursday that its $10 billion new copper mine in Peru was set to ramp up production faster than some analysts had expected. "Overall the picture is starting to look okay," said Jonathan Barratt, chief investment officer of Sydney's Ayers Alliance. "China has announced huge infrastructure spending but we haven't seen a lot of that infrastructure spend yet come into the economy. At the end of the day, that will come down to support base metals."
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