Shanghai copper drifted lower on Wednesday, as concerns about rising stocks and slowing demand awaken again following an abortive rally in London in the previous session. Shanghai's January copper contract, the most active, was down 300 yuan at 65,100 yuan ($8,677) a tonne.
Copper for delivery in three months on the London Metal Exchange was down $25 at $7,770 a tonne. LME copper rose to $7,887 in electronic dealing on Tuesday before fading towards the close. LME inventories rose 425 tonnes on Tuesday to 151,550, up around 15 percent this month. Dealers reported another 4,000 tonnes of copper was on its way to LME warehouses in Asia from Shanghai.
Copper prices are mired between support from the 100-day moving average at $7,657 and 30-day moving average resistance at $7,936, Trilled Metal said in a report. "Consolidation within this range is likely for the remainder of this week, dependent upon a steady, broader financial complex," it said.
US stocks rose on Tuesday, helping to lift Asia-Pacific markets as they opened on Wednesday. Base metals have shown a comparatively tight correlation with equity markets in recent months.
The dollar hovered near the previous day's lows against the euro, on expectations that the Federal Reserve will cut interest rates further when it meets next week. Dealers will be looking for clues to the outcome of the meeting in data on US existing home sales later on Wednesday.
Oil prices continued their retreat from record highs above $90 a barrel, falling to $84.87. Gold was unchanged at $759.2 an ounce, just over $20 off last week's 28-year high. LME lead stocks rose again, adding 925 tonnes to 37,375 on Tuesday. But estimates by the International Lead and Zinc Study Group that the market was in deficit by 84,000 tonnes in the first eight months of the year helped support prices, which shed as much as 5 percent on Monday.
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