Shanghai Futures Exchange (ShFE) copper fell 1.1 percent to 47,140 yuan ($6,831) a tonne on Wednesday after upbeat Chinese trade data eclipsed an overall drop in the country's imports of refined metal. Earlier in the session, prices hit their lowest in a month at 46,910 yuan. ShFE nickel ended Wednesday's session down 3.3 percent.
China unexpectedly posted a rare trade deficit in February as imports surged far more than expected to feed a months-long construction boom, driven by commodities from iron ore and copper to crude oil and coal.
That copper demand, however, was mainly in the form of ore imports for use in domestic smelters rather than an intake of refined metal. "Copper was the only major commodity to show some weakness, with imports of refined copper and products falling 19 percent. This was partly mitigated by strong copper concentrate imports and subsequent surge in domestic copper production," said ANZ in a report.
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