Copper rises on positive US payroll data

Shanghai Futures Exchange (SHFE) copper prices increased Friday, lifted by positive US nonfarm payroll data.

"Base metals were mixed, with the minor metals experiencing some profit taking after a few days of strong gains, while copper saw support come from positive US data," according to a report e-mailed to the Global Times Friday by Australia and New Zealand (ANZ) Banking Group.

The most-traded copper futures for September ended at 51,380 yuan ($8,327) per ton on the SHFE on Friday, up 280 yuan or 0.55 percent compared to Thursday.

The copper market rose by 3.76 percent compared to the previous week. The trading volume decreased by 65,994 lots Friday from Thursday's 513,962 lots.

Copper futures had started last week at a high level with the most-traded September copper contract on the SHFE increasing 0.1 percent at 49,580 yuan a ton compared with the previous trading day.

Financing terms became normal last week after a slowdown in lending by banks following an investigation into a fraud case in Qingdao, Shandong Province, according to a report by Reuters last week. However, premiums for copper in Shanghai still increased Monday to $105-125 a ton, Reuters said, citing data from Chinese price provider shmet.com.

In addition, the Chinese government's supportive policies such as the targeted reserve requirement ratio (RRR) cuts have lifted investor confidence, which is beneficial for the development of the copper market in China, according to a report released by Nanjing-based Jintai Futures Co last week.