Shanghai copper up

13 Feb, 2015

The most-traded April copper contract on the Shanghai Futures Exchange firmed 0.2 percent to 41,110 yuan ($6,584) a tonne on Thursday. "I'm still optimistic we'll see some post-Chinese new year activity in terms of both Chinese import demand and industrial activity in general, though my expectations have been tempered a bit by the recent weak data points," said strategist Daniel Hynes of ANZ in Sydney.
Hynes said weaker-than-expected Chinese inflation data ahead of the Lunar New Year had sparked speculation about the measures China may take to support its economy, adding the potential for a rate cut was likely to keep short sellers at bay. Greece's new leftist government and its international creditors failed to agree on a way forward on the country's unpopular bailout and will try again on Monday, with time running out for a financing deal.
"I have been surprised how well copper has held against the issues in Greece and also the drop in oil prices," said Hynes. China's new home prices may have bottomed and even started to rebound in January after eight months of decline, industry surveys showed, fuelling hopes that official data due on Tuesday will confirm a recovery in the massive property market.

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