Shanghai copper down

Shanghai copper futures fell 1.2 percent in early trade on Friday, tracking weaker London prices after sentiment worsened along with a slide in US stocks. Nickel, which had dived almost 6 percent on Thursday after the London Metal Exchange changed lending rules to free up more metal, rebounded almost 1 percent.
The most-active August copper contract on the Shanghai Futures Exchange had fallen 780 yuan to 64,720 yuan ($8,516) a tonne.
Copper for delivery in three months on the London Metal Exchange fell $75, or 1.01 percent, to $7,360 a tonne.
"The atmosphere is very weak after the US stock market fall," said a Tokyo trader. "Customers are waiting for copper to slide even lower before picking up material."
Asian stocks slid on Friday, tracking a tumble by US stocks as Treasury yields surged above 5 percent, reinforcing fears that global inflation would force borrowing costs to rise.
Higher yields make bonds more attractive as an asset class and may prompt some investors to switch from stocks.
Tokyo's Nikkei average had sunk 1.61 percent, while in South Korea the benchmark KOSPI slipped 1.3 percent.
Nickel bucked the falling trend, adding $400, or 0.93 percent, to $43,300, after on Thursday's dip on the new rules, with investors picking up the metal at the lower prices amid what is still a fundamentally tight market. The LME late on Wednesday amended its lending rules, lowering the limit at which holders of dominant long positions are required to lend to the market, late on Wednesday.
Analysts and traders said the rule change was intended to combat parties working together to build dominant positions.
Nickel stocks in LME-registered warehouses have risen by around 8 percent in June to 8,604 tonnes but remain down from some 36,000 at the beginning of 2006. On the supply side, Chilean copper miner Codelco on Thursday pledged to take steps to improve pay and conditions for subcontracted workers, but a worker' representative dismissed the promise as "absolutely unsatisfactory."
Some workers are threatening to strike in a bid to secure better pay and conditions, possibly hindering mine production.