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Shanghai copper rises on LME, more gains seen

Written by: Staff
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TAIPEI, Apr 14 (Reuters) Shanghai copper prices rose more than 1 percent on Friday, tracking gains in London on the previous day and on short covering ahead of the expiration of the nearby contract, traders said.

Trading on the London Metal Exchange was closed for Easter after ending on Thursday just below an all-time peak of ,150 per tonne on LME Select on fund buying, with some traders eyeing ,000 as the next target.

''Looking at the positives of good fundamentals and inflows from funds, the chances of hitting ,000 are very high,'' said Wang Zheng, a metals analyst at Shanghai Dalu Futures.

Key three-month copper on the LME ended at ,140 per tonne on Thursday.

Copper prices have risen more than four-fold from below ,400 in November 2001 and almost 40 percent this year on strong demand, especially from China, tight supply after years of under-investment in new mining projects and low global stocks.

The April contract on the Shanghai Futures Exchange expires on Monday, which Wang said was sparking short covering, supporting prices.

''Before the Easter vacation there was short-covering in London as next Wednesday is also the settlement day there, so after the vacation there should be more stop-loss buying,'' Wang said.

There is normally large open interest, or unliquidated positions, around the third Wednesday of each month.

Copper contracts in Shanghai rose across the board, with the most active month, July climbing 1.09 percent to 56,830 yuan per tonne.

Shanghai spot copper was tight on Friday as traders sought copper to deliver against the expiring April contract, driving spot prices up 520 yuan to between 56,750 and 57,050 yuan.

The market is waiting for weekly Shanghai stocks data due at around 0700 GMT, with some traders expecting inventories to remain steady ahead of settlement day.

In other metals, LME three-month aluminium closed at TAIPEI, Apr 14 (Reuters) Shanghai copper prices rose more than 1 percent on Friday, tracking gains in London on the previous day and on short covering ahead of the expiration of the nearby contract, traders said.

Trading on the London Metal Exchange was closed for Easter after ending on Thursday just below an all-time peak of $6,150 per tonne on LME Select on fund buying, with some traders eyeing $7,000 as the next target.

''Looking at the positives of good fundamentals and inflows from funds, the chances of hitting $7,000 are very high,'' said Wang Zheng, a metals analyst at Shanghai Dalu Futures.

Key three-month copper on the LME ended at $6,140 per tonne on Thursday.

Copper prices have risen more than four-fold from below $1,400 in November 2001 and almost 40 percent this year on strong demand, especially from China, tight supply after years of under-investment in new mining projects and low global stocks.

The April contract on the Shanghai Futures Exchange expires on Monday, which Wang said was sparking short covering, supporting prices.

''Before the Easter vacation there was short-covering in London as next Wednesday is also the settlement day there, so after the vacation there should be more stop-loss buying,'' Wang said.

There is normally large open interest, or unliquidated positions, around the third Wednesday of each month.

Copper contracts in Shanghai rose across the board, with the most active month, July climbing 1.09 percent to 56,830 yuan per tonne.

Shanghai spot copper was tight on Friday as traders sought copper to deliver against the expiring April contract, driving spot prices up 520 yuan to between 56,750 and 57,050 yuan.

The market is waiting for weekly Shanghai stocks data due at around 0700 GMT, with some traders expecting inventories to remain steady ahead of settlement day.

In other metals, LME three-month aluminium closed at $2,602 per tonne on Thursday, while zinc finished at $3,010.

Metal Prices at 0433 GMT LME ($/tonne), SFE (yuan/tonne) and COMEX (US cents/lb) Metal Prices Metal Last Net Change Pct Move SHFE Cu* 56900.00 640.00 +1.14 SHFE Alu* 20390.00 30.00 +0.15 COMEX Cu** 286.80 0.00 +0.00 Change so far in 2006 Metal Latest bid End prev year Pct Move LME Cu 6130.00 4395.00 +39.48 SHFE Cu* 56900.00 41720.00 +36.39 LME Alum 2590.00 2276.00 +13.80 SHFE Alu* 20390.00 19360.00 +5.32 COMEX Cu** 286.80 204.20 +40.45 LME Zinc 2998.00 1905.00 +57.38 LME Nickel 17775.00 13500.00 +31.67 LME Lead 1167.00 1051.00 +11.04 LME Tin 8850.00 6475.00 +36.68 * 3rd contract months for SHFE copper and aluminium.

** 1st contract month for COMEX copper.

REUTERS PV RAI1128 ,602 per tonne on Thursday, while zinc finished at ,010.

Metal Prices at 0433 GMT LME ($/tonne), SFE (yuan/tonne) and COMEX (US cents/lb) Metal Prices Metal Last Net Change Pct Move SHFE Cu* 56900.00 640.00 +1.14 SHFE Alu* 20390.00 30.00 +0.15 COMEX Cu** 286.80 0.00 +0.00 Change so far in 2006 Metal Latest bid End prev year Pct Move LME Cu 6130.00 4395.00 +39.48 SHFE Cu* 56900.00 41720.00 +36.39 LME Alum 2590.00 2276.00 +13.80 SHFE Alu* 20390.00 19360.00 +5.32 COMEX Cu** 286.80 204.20 +40.45 LME Zinc 2998.00 1905.00 +57.38 LME Nickel 17775.00 13500.00 +31.67 LME Lead 1167.00 1051.00 +11.04 LME Tin 8850.00 6475.00 +36.68 * 3rd contract months for SHFE copper and aluminium.

** 1st contract month for COMEX copper.

REUTERS PV RAI1128

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