Copper futures declined in Shanghai, as some investors deemed a rally as overdone, even as they remained positive on the outlook for Chinese demand.
"It's just a market correction after four straight days of strong gains, nothing has changed on the fundamental front," Yuan Fang, a trader at Shanghai East Asia Futures Co, said by phone yesterday.
Copper for March delivery on the Shanghai Futures Exchange fell 490 yuan, or 0.8 percent, to close at 57,970 yuan (US$7,908) a metric ton. Copper gained by the exchange's trading limits on Monday and last Friday, Bloomberg News said.
The metal for immediate delivery in Changjiang, Shanghai's biggest cash market, fell as much as 2.8 percent to 61,100 yuan a ton yesterday.
"The outlook for demand is good because some processors will start stockpiling soon for the Lunar New Year," said Yuan.
China's Lunar New Year starts February 6 and will last for a week.
China, the world's biggest user of copper, imported 103,410 tons of the metal last month, an increase of 56 percent from a year ago, the Beijing-based customs office said on Monday. Shanghai copper stockpiles fell 2.5 percent to 25,722 tons last week, the lowest since February 1, the exchange said last Friday.
Zinc for March delivery in Shanghai fell 90 yuan, or 0.5 percent, to close at 18,985 yuan a ton. Aluminum for March delivery last traded down 400 yuan, or 2.1 percent, at 18,250 yuan a ton.
(Shanghai Daily December 26, 2007)