Copper and zinc futures jumped to the daily limits in Shanghai
on Friday, aided by a global price surge, as traders seek refuge in
commodities amid a weakening US dollar and crude oil crossing
US$100 a barrel.
All copper futures contracts on the Shanghai Futures Exchange
(SHFE) for 12 different delivery months soared to the daily limits
shortly after opening. The most actively traded copper contracts
for delivery in March reached the ceiling at 59,800 yuan per ton,
up 5.1 percent from the last trading day of 2007.
All 12 zinc futures contracts on the SHFE also surged to the
daily limits shortly after opening, with the most actively traded
contract for delivery in March touching 20,160 yuan per ton.
On the London Metal Exchange (LME), the three-month copper
futures surged 4.3 percent to close at US$7,035 per ton in pit
trading on January 3. In Friday's electronic trading, the
three-month copper futures on LME rose a further 1.07 percent to
US$7,110, continuing the bullish trend of the past three days.
Analysts said Friday's price surge was exacerbated by a
technical factor arising from an adjustment of the percentage
weighting of the Dow Jones-AIG Commodity Index, a worldwide
recognized benchmark index, which tracks the futures prices of 19
different commodities traded on the US exchanges and LME.
Economists and analysts also attributed the recent base metal
rally to the brighter-than-expected US economic outlook for
2008.
Analysts said anticipation of China's increasing demand in base
metals in 2008 could also help maintain the longer-term momentum of
the price increase.
(China Daily January 5, 2008)
