China Commodities Market Roundup-Jan. 25

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[January 25, 2013]

China Commodities Market Roundup-Jan. 25

SHENYANG, Jan 25, 2013 (Xinhua via COMTEX) -- China's domestic commodities declined slightly this week, as trade was limited ahead of the Spring Festival holidays, and the positive HSBC flash PMI for China's manufacturing sector provided little support for the markets as well.

PTA futures led the way higher on Friday, and metals rebounded across the board, while agriculture markets were mixed.

Wenhua CCI index, which tracks the major domestic commodities futures market prices and overall performance, closed at 178.92 points, rising 0.2 percent Friday and dropping 0.27 percent on the week.

The LME copper steadied above 8,000 USD this week after solid economic data from China and the U.S. boosted faith in a global recovery.

The SHFE copper futures inched up this week, and the May contract earlier hit 58,970 yuan per tonne on Friday, its highest in three months. It closed 0.41 percent up, rising 0.41 percent for the week.

Copper prices have risen five weeks in a row.

The U.S. NYMEX crude futures eased off highs this week. Crude futures were on track for a seventh straight week of gains as positive economic data from the U.S. and China lifted the fuel demand outlook at the world's two largest oil consumers.

The SHFE rubber May contract pulled back from a two-week high Wednesday and extended losses Thursday, and slid 0.64 percent on Friday. The contract found support around 25,000 yuan per tonne. The rubber futures have been weak since the start of January as large stockpiles of rubber in key producing countries led to investor caution.

Soybean futures on the CBOT surrendered early gains this week on forecasts of beneficial rains in South America. However, the market is on track for a third successive week of gains, underpinned by strong Chinese demand and prolonged dryness in Argentina.

Domestic agricultural products were weak this week. The DCE Soy meal gave up early gains, mirroring CBOT's move, with the May contract falling from a one-month high, breaking the support level of 3,400 yuan per tonne. It closed up 0.21 percent for the week, gaining for the third week.

The DCE soybeans steadied in choppy trade but remained above earlier range. The May soybeans contract ended up 0.31 percent. For the week, it added 0.33 percent.

"Manufacturing in top metals consumers, China as well as the U.S., grew this month at the fastest pace in the past two years, while data suggesting German growth picked up boosted hopes for a swifter euro zone recovery," said Xu Enze, an economist with Jinpeng Futures.

"Investors will keep focus on the impact of a recovery in global economy on commodities. The world economy may be gaining traction after a sluggish 2012. The U.S. Federal Reserve will hold its policy meeting next week," Xu added. (Contributed by Li Ang; Edited by Jiang Yujuan, jiangyj@xinhua.org)

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