The most-traded January copper contract on the Shanghai Futures Exchange finished 0.4 percent lower at 59,590 yuan ($9,400) a tonne on Tuesday. Premiums for front-month copper against the rolling third month contract have dropped to 170 yuan from more than 500 yuan last week, reflecting trader appetite that has been blunted by high prices.
"This wave of rising prices is purely due to funds' desire to make money with the help of QE3," said a Shanghai-based trader at a Western bank. "Demand is very poor and there is no confidence at all. We just visited a few factories last week, there has been a 10-15 percent decrease in demand this year so far."
Comments
Comments are closed.