Shanghai copper futures slid on Thursday as investors cashed out of a week-long rally during which contracts hit repeated record highs, offsetting the impact of gains on the London Metal Exchange.
Shanghai's most active March contract ended at 41,400 yuan ($5,130) a tonne, dropping 600 yuan from Wednesday's close.
The contract had gained 6 percent over the five trading sessions from last on Thursday, posting record highs on four of those days. But trading volumes on all domestic contracts fell to a thin 42,118 lots from Wednesday's 47,534 lots as the approach of New Year holidays from December 31 to January 3 sidelined many investors.
"The long holidays deterred some buying today, helping the market stage a correction," a Chinese trader said. "But many investors still believe the bull on copper markets at home and abroad will run well into the New Year, and that capped falls in Shanghai today." LME three-month copper hit a record high of $4,511.50 a tonne on Wednesday's kerb trade then ended an open-outcry session at $4,483 still well up from last on Friday's close of $4,450.
London was closed on Monday and Tuesday for holidays. On Thursday's Asian trade, the LME contract was quoted at $4,472.5, when the Shanghai market closed.
Spot prices in Shanghai edged up an average of 70 yuan to move between 42,250 and 43,000 yuan per tonne on Thursday. Shanghai aluminium futures also closed lower on Thursday, mirroring domestic copper, traders said.
The most active March contract ended at 19,190 yuan a tonne, losing 280 yuan from Wednesday's close. Trading volume rose to heavy 61,234 lots from 56,594 lots on Wednesday.
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