Shanghai copper prices fell 1.2 percent on Wednesday, under pressure from expectations of continuing Chinese imports and weakness in London futures. The most-traded June contract on the Shanghai Futures Exchange was at 60,570 yuan ($7,828) a tonne at midday, down from 61,320 yuan at Tuesday's close.
"Shanghai copper is responding quickly to London's fall," analyst Cai Luoyi at China International Futures said, adding that weak cash prices versus forward contracts were a major concern for traders, suggesting easing supplies in China.
"Traders expect that more than 50,000 tonnes of copper imports will arrive in eastern China over the next two weeks, which is damping buying interest," he said.
Shanghai spot copper was down 575 yuan at 60,250-60,450 yuan. London Metal Exchange copper for three-month delivery was $65 lowers at $6,580 a tonne, after touching a three-month high of $6,715 on Tuesday.
"From a chart point of view, our technical team suggests that the recent rally is approaching important resistance at $6,700 and, as a result, a cautious approach is now advised," Standard Bank, London, said in a note. "There is a strong probability of copper entering a period of sideways trading activity and this may well come to the fore from around $6,700."
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