Shanghai Futures Exchange copper sagged 1.2 percent to 36,030 yuan ($5,658.42) a tonne on Monday, having also plumbed a six-year low, following attacks in Paris that renewed risk aversion and lifted the dollar, dragging on a struggling global economic recovery.
Sentiment towards copper worsened after news that Chile's Codelco, the world's top copper producer, has slashed its 2016 premium to China for the refined metal by more than a quarter to a three-year low. "The Codelco number spooked the Chinese. I don't think they were expecting such a low number so soon," said a trader in Singapore. "Copper prices will find support with signs of demand recovery in property, power and home appliance sectors," Argonaut Securities said in a note. "President Xi recently said that China will find ways to reduce inventory in the property sector so as to promote sustainable growth. This guideline implies to us that China will focus on supporting property in 2016, by launching more easing measures."
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