Shanghai aluminium and copper drop

Shanghai aluminium dropped on Thursday after the Chinese government announced measures to cut power prices, which traders bet would lower the production costs of local aluminium and depress prices. The most traded June copper contract on the Shanghai Futures Exchange lost 0.6 percent to 43,310 yuan.
Aluminium traded on the Shanghai Futures Exchange fell more than 2 percent before trimming losses to end at 13255 yuan ($2,136) a tonne by 0716 GMT, down 1 percent. Increases in production have weighed on prices that were already struggling due to oversupply.
"What the government announced overnight is a cut to the price of power. The beneficiaries, in terms of power users, are obviously aluminium among other sectors," said analyst Lachlan Shaw of UBS in Melbourne.