Copper Jumps in Shanghai on Optimism Over Consumption

BEIJING, Apr. 10 -- Copper advanced in Shanghai on optimism Chinese government stimulus spending will boost demand from the power industry in the world's largest user of the metal.

    According to Macquarie Securities Ltd China's economic growth will be as much as 8% this year 1 percentage point more than its previous forecast. The government's RMB 4 trillion stimulus plans has driven investment back to levels before the global economic crisis, fuelled rebounds in electricity and steel output, and restored consumer confidence.

    Li Ling, Minmetals Star Futures Co analyst, said "Investors have been adding to their long positions lately with a view that demand seems strong in the short term. He said that. Copper for spot delivery in Shanghai was quoted at a premium of RMB 900 a ton above the near-term April contract on the Shanghai Futures Exchange".

    The most actively traded July delivery copper contract in Shanghai rallied as much as 3.6% to RMB 36,580/mt and traded at RMB 36,270/mt.

    Customs data showed that copper, the best performer on the London Metal Exchange, climbed 43% this year on speculation the worst of the global recession has passed. China's imports of the metal jumped 71% to 451,438 mt in the first two months from a year ago.

    (Source: Bloomberg)