Shanghai copper falls

Copper prices fell in London on Monday, paring last week's 1.8 percent rise and Shanghai also dipped, tracking losses in equity markets and pressured by fresh worries about near-term Chinese demand for industrial raw materials. Shanghai's most-active copper futures contract, June, lost 1.40 percent or 1,010 yuan to 71,350 yuan a tonne.
Confidence expressed in the Chinese media that the nation would cap inflation below the full-year target of 4 percent worried some investors. The threat of Chinese tightening has been a drag on markets on the risk that rising interest rates and tighter lending would sap demand for raw materials. But the front page editorial in the People's Daily cited a number of factors as favourable to slowing the upward momentum of consumer prices, including an oversupply of industrial products, abundant grain stocks and large foreign currency reserves.