Shanghai copper futures rose on Friday following record highs on the London Metal Exchange, while spot prices strengthened on expectations of lower imports through July. Three-month LME copper futures hit $3,347 a tonne on Thursday, a then-record high, as low LME stock levels inspired hedge funds to shift their attention back to commodities.
They retreated during London's night, but resumed their climb after the Shanghai markets closed. They traded at $3,342 a tonne at the close of Shanghai trade, up $49 a tonne from Thursday, then rose to a fresh peak of $3,365 a tonne on Friday.
Shanghai's most-active August contract ended at 33,290 yuan ($4,022) a tonne on Friday, up 410 yuan, or 1.2 percent, from Thursday's close.
Front-month July gained 630 yuan to 34,350 yuan a tonne, as the backwardation widened to over 1,000 yuan.
Spot copper was assessed at 34,650-35,000 yuan a tonne on Friday, up 695 yuan. Traders expect tighter spot markets through the end of June and well into July as a wave of imports in late May and June dries up.
Most Shanghai aluminium futures also rose with higher LME prices. The most-active September contract ended 10 yuan higher at 16,750 yuan a tonne, as LME three-month aluminium rose to $1,752.50 a tonne, up $12.50 a tonne from the same time on Thursday.
Aluminium stocks in exchange warehouses rose by 1,723 tonnes, or 8 percent, to 22,473 tonnes, the exchange said on Friday. Also reflecting greater spot supplies, the front month July contract lost 30 yuan to close at 16,980 yuan.