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| Copper Futures Surge to Daily Limit |
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Copper futures in Copper for delivery in October, the most actively traded contract, increased by as much as 2,700 yuan (US$337) to 70,310 yuan (US$8,799) a ton its daily allowable limit in early trade on the Shanghai Futures Exchange. The contract, which rose to a record 85,550 yuan (US$10,694) in May, backed off from its morning highs to close at 69,430 yuan (US$8,679), 1,820 yuan (US$228) higher than the settlement price of 67,610 yuan (US$8,451) on Friday. "The significant price jump (on the Shanghai Futures Exchange) is largely driven by external factors on the international markets," said Ma Xi, an analyst at Shanghai-based Jinyuan Futures Brokerage Co. "The surging price on the London Metal Exchange (LME) last Friday and the news of an imminent strike at Copper futures on the LME, the world's largest metal bourse, climbed 5.5 percent last Friday. The three-month LME copper price traded as high as US$8,030 on Monday the highest level since mid-July. Concern that copper production could be disrupted by a strike at Escondida in "The news of a strike in the world's largest copper mine in Analysts say they expect the copper price to continue its upswing in the short term. "The copper price is expected to maintain an upward curve in the short term as the high price on the London Metal Exchange is unlikely to see a sharp fall and consumption in the country is picking up," said Ma. The country is estimated to have consumed about 3.65 million tons of refined copper. The number is forecast to hit 3.9 million this year, according to the consultancy. China's copper consumption, which grew by an average 11 percent annually from 1990 to 2005, is largely in line with the country's booming economy, especially the power and auto industry. he sweeping nationwide grid upgrade and the dynamic auto industry, experts said, are two major copper guzzlers in The power and related industries, experts estimate, account for 55 percent of total copper consumption in The country poured about 170 billion yuan (US$2.1 billion) into developing or upgrading its nationwide grid, a figure that is expected to hit 200 billion yuan (US$2.5 billion) this year. While the auto industry has also witnessed breakneck growth over the past few years, auto production and sales grew by 36.6 percent and 36 percent year-on-year in the first quarter of this year respectively. Copper for cash delivery climbed to 70,300 yuan (US$8,787) a ton, or 3.1 percent, yesterday in Changjiang, the biggest spot market in (
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