Shanghai copper down

Shanghai copper dipped towards a major technical support level on Wednesday, with a break likely to trigger selling by momentum-based investors, as the market also eyed forecasts of improving supply. Global copper inventories are expected to rise as mine supply improves later in the year, although demand from makers of copper products is also expected to revive from its summer lull.
"We should not be too bearish," said analyst Helen Lau at UOB-Kai Hian Securities in Hong Kong. "The down season is coming to an end now. Starting from September, there will be some recovery in seasonal demand at the utilisation rate at fabricators." The most-traded October copper contract on the Shanghai Futures Exchange slipped by 0.5 percent to 48,950 yuan($7,966) a tonne on Wednesday. A break of the 200-day moving average around 48,608, is likely to trigger further selling.