Shanghai copper prices post moderate recovery

The Shanghai Futures Exchange (SHFE) copper prices rose slightly on Friday and the inventory was also up ahead of the upcoming week-long National Day holidays which begin on October 1.

The most-traded copper contract for December ended at 47,890 yuan ($7,795) per ton, up 140 yuan from Thursday.

The copper price was down 570 yuan or 1.18 percent on Friday from the previous Friday, September 19.

The trading volume climbed 27,902 lots on Friday from Thursday's 378,546 lots.

Copper futures began the week at a low level mainly due to investors' concern over the outlook of the economy and real estate sector in China, according to a report from Reuters published Monday.

Although Friday saw a slight rise compared to the previous day, the copper prices still registered a decline on a weekly basis.

The overall market sentiment was bearish, with enterprises reluctant to stockpile copper due to capital pressure, which will weigh on copper prices in the future, according to a report from Zhengzhou-based Wanda Futures on Friday.

"Demand so far is a bit weaker than we had expected in the beginning of the year," Reuters reported Friday, citing analyst Joel Crane of Morgan Stanley in Melbourne.

However, Chinese domestic market is facing the shortage of metal despite expectations of a surplus this year, while mine supply has been less than what was previously thought, which is seen as supporting the prices, Crane said, according to the report from Reuters on Friday.

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

The SHFE copper inventory rose 1,701 tons by the end of September 26 compared to the previous Friday.

But due to the upcoming National Day holidays, there are many uncertainties in the market and investors are being cautious in purchasing copper before the holidays, according to a report from Xiamen-based Ruida Futures published on Friday.