Shanghai copper prices rise on expectations of US data

The Shanghai Futures Exchange (SHFE) copper prices increased slightly on Friday due to investors' expectations about positive US economic data due later that day but the gains were capped by concerns over limited domestic demand.

"Most economists now have a positive outlook for non-farm payroll and jobless data, which is supporting the market," according to a report from London-based metal information provider Metal Bulletin Friday, citing an anonymous analyst n Shanghai.

The most-traded copper futures for November finished at 49,830 yuan ($8072.46) per ton on the SHFE on Friday, up 330 yuan or 0.67 percent from Thursday.

The copper price was down 260 yuan or 0.52 percent from the previous Friday, August 29. The trading volume dropped 23,334 lots on Friday from Thursday's 318,328 lots.

The European Central Bank announced Thursday to cut interest rates and a plan for debt purchases, also known as quantitative easing.

The news briefly pushed the copper market up Friday before it retreated as limited demand restricted copper prices from rising, according to a report by Huatai Great Wall Futures Co on Friday.

Chinese domestic demand for financing copper has slowed down mainly due to an investigation into a fraud at Qingdao Port related to the use of copper as collateral to get financing from banks, the report said.

Lingering uncertainties in the economy, such as the property market, might also cause some volatility in the copper market, it noted.

Although the demand for copper is limited during this season, the market is still upbeat due to expectations that the government will roll out further stimulus plans, according to a report by Henan-based Futures Daily on Tuesday.

US non-farm payrolls added lower-than-expected 142,000 jobs in August, the smallest increase in eight months, Reuters reported on Friday.