MARKET TALK: Shanghai Copper Stocks Fall On Cash Premium

Copper stocks at Shanghai Futures Exchange down 10% on week as cash prices offer favorable premium to futures, making dealers more willing to sell, say traders. Lower copper imports in 2006 have tightened domestic copper supplies, while demand remains strong, pushing cash price to CNY200-CNY300 premium against spot future contract. "The market is good because not many people want to put copper in storage at the exchange," says Star Futures' Jerry Wei. Wei adds aluminum cash price lacks profitable premium; aluminum stocks rise 14.6% on week to 26,353 tons.