"The base complex continues to remain lethargic as metals catch a light-bid following Friday's broad sell-off, but a 'low-volume, dead-cat bounce' sums up the action so far," Marex Spectron said in a report. Traders suggested the backwardation has encouraged deliveries into SHFE warehouses, where stocks have climbed around 10,000 tonnes since late December.
China will encourage companies to increase their use of yuan for settling cross-border trade deals. A blizzard of data in coming weeks is expected to show China's economy ended a strong 2017 on a slightly softer note, but activity has likely remained more resilient than expected despite a punishing crackdown on industrial pollution and a cooling property market.