China copper

DJ China Copper Futures Settle Up On Pre-Holiday Short-Covering
SHANGHAI (Dow Jones)--Copper futures traded on the Shanghai Futures Exchange settled higher Thursday on short-covering as risk averse investors closed their positions ahead of the week-long holiday.
Analysts said bullish market sentiment largely due to expectations of increased Chinese buying in the coming spring will likely drive three-month London Metal Exchange copper higher during the Lunar New Year holiday.
The benchmark April 2007 contract settled CNY720 higher at CNY54,860 a metric ton, after trading between CNY54,100/ton and CNY55,390/ton.
Turnover for all Shanghai copper futures totaled 92,222 lots versus 9,214 lots Wednesday, when trading was halted after prices hit daily upper limits.
One lot equals five tons.
"SHFE copper looks much stronger than LME, but it might change after the holiday, weighed down by imports," said Li Rong, an analyst at Great Wall Futures Co.
Li said domestic cash premiums fell to zero Thursday from CNY700-CNY800 Wednesday due to lack of buyers as many have already gone on holiday.
Markets in China will be closed next week for the Chinese New Year holiday.
On the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, copper was quoted at CNY56,000-CNY56,300/ton Thursday, compared with Wednesday's CNY55,720-CNY55,920/ton.
"Looking at China, we might see price-supportive import data in coming months, but it's unwise to bet three-month LME copper prices will rise merely on Chinese buying," a trader in Shanghai said.
"It's been a bit unpredictable recently," he added, referring to LME copper futures.
Three-month LME copper fell $29 to end the late kerb Wednesday at $5,720/ton.
It was quoted higher at $5,790/ton around 0700 GMT.
Shanghai's aluminum futures settled almost unchanged. The benchmark May 2007 contract gained CN10 to settle at CNY19,700/ton.
China's futures markets are off-limits to foreign investors.
Thursday's closing prices in yuan a metric ton versus LME late kerb prices from Wednesday in dollars a metric ton: