Shanghai copper futures boosted by less gloomy house price data

Chinese copper futures rebounded slightly Friday thanks to a deceleration in the fall in home prices in 70 major Chinese cities in November.

The most-traded copper contract for March delivery on the Shanghai Futures Exchange (SHFE) rose by 350 yuan ($56.26), or 0.78 percent, from Thursday, closing at 45,500 yuan per ton Friday. The contract was down 560 yuan, or 1.22 percent, week-on-week.

The benchmark three-month copper contract on the London Metal Exchange (LME) jumped 1.24 percent to close at $6,390 per ton Friday. The contract was down 1.54 percent on a weekly basis.

Copper prices on the SHFE fell considerably at the beginning of the week, following a series of weak economic data. But there was a slight recovery on Thursday and Friday, after the release of home prices for 70 major cities for November.

According to the figures released Thursday by the National Bureau of Statistics (NBS), new home prices declined month-on-month in 67 of the 70 cities tracked by the NBS, and secondhand home prices fell in 68 cities.

However, the decline moderated, with most cities seeing a narrowing fall in home prices. As construction generally accounts for 21 percent of copper demand in China, the moderation in price drops helped lift copper futures as a whole.

Meanwhile, the strengthening dollar continued to weigh down the global commodities market. A stronger dollar curbs demand for commodities by making them more expensive for holders of other currencies.