Shanghai copper rebounded from early losses to close up nearly 1 percent on Wednesday, on the back of bargain hunting and a solid spot premium. London copper gained 1.2 percent, after a 3 percent overnight fall to a four-year low on dismal US housing data and lingering concerns over the global economy.
Traders and analysts expected Shanghai copper prices to be steady over the next two trading days when London is closed, and they may rise given the firm spot premiums. "Traders here could try to manage a rise during the absence of London trading as the spot copper premium in Shanghai is standing at a high level," said Shao Hebin, an analyst at Great Wall Futures in Shanghai.
Spot premiums have hovered between 800 yuan and 1200 yuan since last week, compared with a slight discount in mid-December, traders said, reflecting merchants' efforts to prevent prices from slipping further. The key March Shanghai copper contract gained 190 yuan to 23,080 yuan ($3,370) a tonne at the daily close, rebounding from a 2 percent fall hit in the morning session and distancing itself from Friday's five-year low of 22,320 yuan.