ecns [expanded by feedex.net]: Copper price sees moderate increase, uncertainties remain

ecns [expanded by feedex.net]

ecns

Copper price sees moderate increase, uncertainties remain
http://www.ecns.cn/business/2014/02-17/101011.shtml
Feb 16th 2014, 23:13

2014-02-17 08:13 Global Times


The most-traded copper contract for delivery in April increased by 0.10 percent on the Shanghai Futures Exchange (SHFE) Friday, ending at 50,670 yuan ($8,350.57) per ton, a decline of 0.71 percent week-on-week. The trading volume for the contract increased by 25,280 lots on Friday compared to Thursday.


China's exports grew by 10.6 percent year-on-year in January to $207.1 billion, while imports were up by 10 percent year-on-year to $175.3 billion, according to data released Wednesday by the General Administration of Customs. The customs' data also showed China's copper imports climbed 53 percent in January year-on-year, a record rise.


Trade data for January was better than expected, but this was largely due to restocking ahead of the Chinese Lunar New Year, so the trend will not be maintained in the short term, according to a report by China Securities Journal (CSJ) Friday.


Copper consumption in the domestic market is not likely to exceed expectations, given the probability of weak economic performance in China in the first quarter, the CSJ report said.


In addition, 21 domestic electric wire makers, which use copper as a raw material, have predicted that new orders will decline in February, the CSJ report said, weighing on the outlook for copper demand in China.


In the global market, the benchmark three-month copper contract on the London Metal Exchange ended at $7,150 per ton Friday, up 0.6 percent from Thursday, following a rise in the euro against the dollar thanks to better German and French economic growth data, according to a report by Reuters Friday.


A weak dollar makes commodities like copper that are priced in the US cheaper for users of other currencies.


Although copper saw gains in the global market, there are still uncertainties that could affect its future performance, such as doubts about China's economic growth and concerns over the US economy, Reuters reported Friday.





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