Shanghai aluminium futures rose 0.5 percent to a three-week high on Thursday after sources said China's State Reserve Bureau plans to purchase the metal at about a 9 percent premium to current prices. China's State Reserves Bureau (SRB) has agreed to buy 300,000 tonnes of aluminium at 12,300 yuan ($1,800) per tonne in January to support producers, trading and industry sources told Reuters on Thursday.
The key aluminium futures contract closed up 60 yuan to 11,330 yuan a tonne. "Aluminium prices were encouraged on the reserve purchase news," said analyst Jia Zheng at Southwest Futures, "The decided purchase volume seems to be lower than expected but we are looking forward to more movement by the reserve bureau."
Shanghai copper ticked down almost 1 percent to 22,880 yuan, approaching its five-year low of 22,320 yuan struck last Friday, after its London counterpart drifted to a four-year low in thin trade in response to dismal economic data on Wednesday. Major global financial markets are closed on Thursday for the Christmas holiday. UK markets remain closed on Friday while US markets resume trade on Friday.