Shanghai copper closed down sharply on Tuesday after the London Metal Exchange lost ground due to geopolitical uncertainty following the killing of the leader of the Palestinian group Hamas, traders said.
The most active September contract finished 760 yuan lower at 28,770 yuan ($3,475), while other contracts closed down between 410 and 730 yuan. Volume tailed off to 202,358 lots from Monday's 226,892 lots.
"The contracts were really under pressure from short-selling," said a Shanghai trader.
"Events in Palestine have temporarily stalled the markets' progress, but it remains to be seen how fundamental the impact will be," he added.
Israel assassinated Hamas leader Ahmed Yassin on Monday, threatening to unleash Palestinian revenge attacks that could trigger fresh security fears across the world. The news depressed stock and futures markets around the world.
LME three-month copper was quoted at $2,953/$2,963 a tonne by 0335 GMT in Tuesday's Asian trade, down from a kerb close of $2,965/2,966 on Monday in London following a loss of $39 on the day.
Spot copper fell between 230 and 340 yuan to move in a range of between 28,600 yuan and 28,650 yuan per tonne on Tuesday.
Most Shanghai aluminium futures ended down 40 yuan to 170 yuan per tonne on Tuesday as volume increased marginally to 28,366 lots from 27,912 lots on Monday.
LME three-month aluminium was steady at $1,664/$1,667 a tonne in Tuesday's Asian trade, versus Monday's London kerb close of $1,665.50/$1,666.50.
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