Copper futures rebound in Shanghai amid easing of concerns over Greece, Ukraine

Copper futures in Shanghai rose on Friday amid easing concerns over both Greece and Ukraine.

The most-traded copper contract for April on the Shanghai Futures Exchange (SHFE) closed at 42,120 yuan ($6,739.20) per ton Friday, up 1,010 yuan or 2.46 percent from the previous session. The trading volume increased by 149,026 lots Friday from Thursday's 280,814 lots.

The contract's price was up 450 yuan from the previous Friday, February 6.

"Base metals were stronger, with copper posting the largest gains. Copper found support [from] improving demand in Europe following the cease-fire in Ukraine and an accord between Greece and its Eurozone creditors," read a research note sent to the Global Times Friday by Australia and New Zealand Banking Group.

Germany, France, Russia and Ukraine reached a deal Thursday that offers hope for a cease-fire in eastern Ukraine. Meanwhile, Greece agreed Thursday to talk to its creditors, and progress is expected in resolving its debt issue.

However, copper prices had fallen earlier in the week. They dropped on Monday after the release of weak Chinese trade data, Reuters reported, causing more concerns over economic growth in China, the world's largest copper consumer.

China's imports and exports missed expectations in January. Exports fell 3.2 percent in January year-on-year, compared to growth of 9.9 percent in December. Meanwhile, imports declined 19.7 percent in January year-on-year, the sharpest fall since June 2009, according to data released by the General Administration of Customs on February 8.

The data also showed that China's imports of copper fell 2.4 percent month-on-month to 410,000 tons in January.

Overcapacity will continue to weigh on copper prices in the short term, according to a report by Henan-based Futures Daily on Friday.

Flat performance in the auto, home appliance and real estate sectors will also weigh on prices, the report said.