Shanghai copper up

28 Apr, 2015

Shanghai benchmark copper firmed by 0.8 percent to $6,080 a tonne, having struck a one-week high on Monday, while the most active June contract on the Shanghai Futures Exchange climbed 1.4 percent to 43,880 yuan ($7,074) a tonne.
ShFE tin tracked gains in London as Indonesian producers slashed output in response to low prices, triggering a 4 percent short-covering rally. Shanghai nickel soared by its maximum allowed 5 percent.
Beijing's steps to boost liquidity and bank lending, including a hefty cut to banks' reserve requirements this month, sent a strong signal that officials would act to avoid further economic deterioration, supporting metals, said analyst Dominic Schnider at UBS Wealth Management in Hong Kong.
A senior official at the country's top economic planner said on Friday China would do more to bolster its economy and that it would accelerate the construction of big projects.
Schnider said nickel's rally appeared to be technically driven and that he was waiting to see a brighter fundamental picture before investing.
"For me, going long nickel requires two things - an improvement in the US manufacturing readings and a dip in LME inventories. Then I think we can chase the rally. But given the amount of LME inventory at hand, it suggests this rally is a momentum play and not more."

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