Shanghai copper was steady on Friday, with Chinese consumers' reluctance to buy at current high prices and an expected rise in stocks offset by bullish longer-term demands prospects. Shanghai's most-active December copper contract edged down 30 yuan to 66,890 yuan ($8,910) a tonne at Friday's close.
"Chinese consumers have been standing back after the prices in Shanghai moved above 64,000 yuan," said analyst Sheen Weimin at Mike Futures. "But I think they should accept the higher prices, as they have done before, since there is still no perfect substitution for the metal."
Despite high prices, China imported 216,613 tonnes of copper, including semi-finished products, in September, up 12.9 percent from August imports. First nine months of the year imports were up 40.5 percent. Shanghai copper inventories this week jumped by 10,769 tonnes, or 23 percent, according to data covering the past two weeks released after the market close on Friday.
"The rise could continue for another one or two weeks, putting pressure on prices, but we are still holding a bullish forecast on prices in the long term," said analyst Cai Luoyi at China International Futures.
Copper for delivery in three months on the London Metal Exchange rose $20 or 0.25 percent to $8,100 a tonne. "Japanese consumers are in a quiet mood this week, and are waiting for prices to fall deeply before they start to buy again," an LME trader based in Tokyo said.