Promising signals set to buoy copper futures in Shanghai

Shanghai copper futures saw a slight dip Friday, with global markets closed for the Christmas holiday break.

The most-traded copper contract for March on the Shanghai Futures Exchange (SHFE) closed at 45,510 yuan ($7,281.60) per ton Friday, down 120 yuan from the previous trading day. The price was up 10 yuan compared to the previous Friday, December 19.

The trading volume declined by 31,208 lots Friday compared to Thursday's 211,346 lots.

The London Metal Exchange was closed for Christmas and Boxing Day.

The low global crude oil prices were still weighing on copper futures last week, and weak sentiment among investors in Europe also contributed to sluggish performance of the copper market, according to a report Friday by Beijing-based Galaxy Futures Co.

However, there were also some encouraging signs for the market. Saudi Arabia's 2015 budget is likely to assume an oil price of $80 a barrel, down from $103 a barrel in 2014, according to a report by Bloomberg Friday, citing John Sfakianakis, a former chief economic adviser to Saudi Arabia's Ministry of Finance.

The prediction of $80 a barrel for oil was higher than the expected level of $60 a barrel, creating expectations that oil prices will see a rebound in the near future, the report from Bloomberg said.

There has also been speculation that the Chinese government may boost liquidity in order to spur the economy.

"The underlying market is weak given the recent large imports, strong production and weak demand but hopes of more policies to boost the economy are propping up prices," Yan Duanhong, an analyst at Shenzhen-based Jinrui Futures, was quoted as saying by a Reuters report Friday.