(09/11) Copper up on weak dollar, brighter demand outlook
November 09, 2009
London copper rose more than one per cent on Monday, supported by a weak dollar and a brighter demand outlook, after Codelco raised premium charges for Asian customers in 2010.
Chile's Codelco, the world's largest copper miner, has said the term premium for copper to the Japanese port of Yokohama will rise 15 per cent a year earlier to $US75 a tonne in 2010.
Three-month copper futures on the London Metal Exchange rose $US90 to $US6,580 a tonne by 1802 AEDT, reversing losses in the previous session caused by soft US job data released on Friday.
Shanghai's benchmark third-month copper futures edged up 0.3 per cent to close at 51,310 yuan a tonne.
"Investors are a little cautious ahead of the data release -- if October's imports data turned out weak, it would indicate the current prices were the result of short-term speculation without support from fundamentals," said Peng from COFCO Futures.
China's October imports of unwrought copper and semi-finished copper products are expected to fall after a surprisingly strong inflow in September, hit by poor margins for spot imports and delays to contracted shipments.
Some traders and analysts, however, expected copper prices to remain trapped in narrow price ranges, if the balance of bearish and bullish factors stays.
"There won't be much going on in the next week or two, unless some major news breaks.
London copper is likely to be trading in the range of $US6,480 and $US6,600," said a Shanghai-based trader.