MELBOURNE: Shanghai Futures Exchange copper ended up 0.1 percent at 35,640 yuan ($5,417) a tonne on Tuesday. The exchange will be closed from the night session on Friday, Feb. 5, and will reopen on Monday, Feb. 15 for Lunar New Year holidays.
Traders said copper prices hit buy stops on the way up, while a steady yuan had convinced traders betting on further yuan depreciation to close up early for the holidays.
Chinese shares ended higher on Tuesday, and the country’s central bank guided the yuan to its highest daily fix in almost a month as Beijing sought to keep markets calm heading into the Lunar New Year holidays.
Copper prices have been underpinned by solid imports in December, partly fuelled by stockpiling ahead of China’s week-long break. Prices managed to hold their ground despite the poor factory figures on Monday, having slumped to six and a half year lows last month.
“It was a rough start to the year. But the China data that we saw earlier in the month including imports, seemed to provide a base for confidence for the bulls,” said analyst Daniel Hynes of ANZ in Sydney.
“That reaction yesterday just shows you that maybe all the downside risks are priced in.”—Reuters