MARKET TALK: China Copper Futures Up On O/N LME Gains

Copper futures traded on Shanghai Futures Exchange higher, in tandem with overnight gains in LME 3-month. "Copper is still biased up, despite the knee-jerk reaction yesterday on news about normal operations at Grasberg mine; prices are underpinned by continued drawdown in LME copper stocks and rising canceled warrants, which deters fresh short-selling," says China International Futures (Shanghai). Analysts say consolidation may continue this week, but there may be sharp gains in LME 3-month when SHFE closed for Labor Day holidays first week of May. Benchmark July contract at CNY73,300/ton, +CNY440. LME 3-month at $7,990/ton, down CNY19 from PM kerb.