Shanghai copper prices fell one percent on Tuesday and London futures eased after a failed attempt to break higher, while LME aluminium drifted less than 6 percent short of a record high. The most active Shanghai September copper contract fell 610 yuan to 62,090 yuan ($9,032) a tonne at the close, while London Metal Exchange copper for delivery in three months shed $35 to $8,365.
"In the short term, I think copper might be set for some weakness," a dealer in Singapore said. On Monday, LME copper touched $8,490, its highest since mid-May and less than $400 short of its record high of April 17, but failed to overcome technical resistance between $8,450 and $8,500.
But in the longer term, limited stocks and threats to supply in Africa and Latin America could lift prices above the all-time peak. Shanghai zinc fell 3 percent to 15,945 yuan, giving up the previous day's gains as investors focused on soft near-term fundamentals. LME zinc fell $6 to $1,920.
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