The most-traded March copper contract on the Shanghai Futures Exchange fell by 1.3 percent to 43,960 yuan ($7,091) a tonne on Monday, having hit its weakest since December 1. Investors betting further losses were to come given stuttering demand growth in the United States and China. Metals prices were also caught in a commodities downdraft spurred by oil, which extended a slide on Monday as Goldman Sachs lowered its short-term price outlook.
However, the dramatic drop in crude oil prices should spur economic activity, which should then underpin demand for metals, said Jonathan Barratt, chief investment officer at Ayers Alliance in Sydney. "If I was a potential buyer, then I would be stocking up at these levels," he said.
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