Text: | Print|

Copper futures see week-on-week fall

2014-02-24 10:34 Global Times Web Editor: qindexing
1

The most-traded copper contract for delivery in May climbed by 0.26 percent on the Shanghai Futures Exchange (SHFE) Friday, ending at 50,510 yuan ($8291.27) per ton, but the contract declined 0.36 percent week-on-week. The trading volume for the contract declined by 84,652 lots on Friday compared to Thursday.

The flash HSBC/Markit China Manufacturing Purchasing Managers' Index for February dipped to 48.3 from January's final reading of 49.5, a seven-month low.

After the data came out, global copper prices slipped due to concerns about a possible slide in copper demand from China, according to a report by Reuters Thursday.

China is the world's largest copper consumer, accounting for nearly 40 percent of global refined copper demand.

The benchmark three-month copper contract on the London Metal Exchange (LME) closed at $7,131 per ton Thursday, down 0.7 percent from Wednesday, Reuters said.

On the other hand, data released Friday by China's General Administration of Customs showed that China imported 397,459 tons of refined copper in January, close to the record 406,937 tons imported in December 2011 and an increase of 63.5 percent year-on-year.

But analysts pointed out that this sharp rise was partly because many traders had brought forward their copper import plans from February to January due to the Chinese Lunar New Year holidays, according to a report Thursday by Henan Province-based Futures Daily.

Financing is another reason for the rising copper demand, according to the report.

Banks accept copper contracts and inventories for borrowers to extend credit, and copper-backed credit climbs when money is tight, Futures Daily said.

Given the weak manufacturing data for February in China, the actual demand for copper from manufacturers is quite limited, bringing uncertainties for the copper price outlook in the coming months, the Futures Daily report said.

Comments (0)
Most popular in 24h
  Archived Content
Media partners:

Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.