BEIJING, Feb 08, 2012 (Dow Jones) -- Copper futures rose on the Shanghai Futures Exchange Wednesday, tracking stronger domestic equities and overnight gains in most base metals in London after optimism over Greek debt talks strengthened the euro.
The most actively traded May copper contract settled 1% higher at CNY61,110/ton.
"Domestic equities are the main cue for copper today, which also factored in stronger U.S. markets and a stronger euro overnight," Shanghai Cifco Futures analyst Wang Zhouyi said.
Upgrades to electricity grids in newly developing inland areas has increased demand for copper and contributed to lower domestic inventories compared with year-ago levels, Barclays Capital said in a note.
"Even with much slower refined demand growth and strong domestic mine production growth, China's need for copper imports in one form of another will continue to grow this year," Barclays said.
Spot copper at the Changjiang Nonferrous Metals Trading Market, a major spot market in Shanghai, was quoted at CNY59,400-59,550/ton, unchanged from Tuesday.
London Metal Exchange base metals closed mostly higher Tuesday due to a stronger euro. Three-month copper ended the afternoon kerb 0.2% lower at $8,480/ton.
The contract was quoted 1.7% higher at $8,620/ton around 0700 GMT, when Shanghai closed.
Shanghai aluminum, zinc and lead tracked copper higher Wednesday.
Following are Wednesday's settlement prices in yuan a metric ton and LME late kerb prices from Tuesday in dollars a ton:
SHFE LME
Copper May 61,110 Up 620 3Mo 8,480 Down 20
Aluminum May 16,320 Up 60 3Mo 2,254.5 Up 31.5
Zinc Apr 16,155 Up 110 3Mo 2,119 Down 11
Lead Apr 16,210 Up 90 3Mo 2,186 Up 6
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