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Copper futures climb on rally, speculationBy Zheng Lifei (China Daily)Updated: 2007-02-27 10:00 SHANGHAI: Copper futures in Shanghai surged by their daily limit of 4 percent yesterday, helped by a price rally in London and speculation of increased domestic demand.
A futures contract is an obligation to sell or buy a commodity at a fixed price for delivery by a specific date. "It is almost a standard phenomenon that copper prices surge after the week-long Lunar New Year holiday," said Cai Luoyi, head of the research department at China International Futures Co (Shanghai). "The end of the holiday also signals the coming of the peak (copper) consumption season, which also helps lift the buying sentiment," the analyst said. Copper and copper products imports in China, the world's biggest copper
consumer, surged 44 percent in January from a year earlier, according to Chinese
customs figures.
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