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Shanghai copper futures rose on Thursday on light technical buying, but sentiment remained cautious as investors awaited clearer leads from the London Metal Exchange.

Shanghai's most active contract, December ended 120 yuan higher at 25,880 yuan ($3,127) a tonne, while most other contracts climbed between 90 yuan and 170 yuan. Combined volume dropped to light 83,852 lots from already thin 91,408 lots on Wednesday.

"Trade is rangebound because tight movements on the London Metal Exchange provided little direction," said a trader in Shanghai. LME three-month copper finished on Wednesday's kerb session down $29 at $2,706 a tonne after bouncing off its lowest in a month at $2,684 a tonne.

But it managed to firm to $2,727/$2,732 a tonne on Thursday's Asian trade on short covering by Chinese buyers. Spot copper in Shanghai moved in a range of 28,920-29,020 yuan a tonne on Thursday.

Shanghai aluminium contracts closed down between 50 yuan and 450 yuan a tonne, with combined volume rising to 28,858 lots from slack 26,930 lots on Wednesday.

LME three-month aluminium was quoted at $1,698/$1,701 a tonne on Thursday's Asian trade, firming from $1,692 at Wednesday's kerb close.

Copyright Reuters, 2004


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