Shanghai Futures Exchange copper closed down 2 percent at 34,390 yuan ($5,374) a tonne on Thursday in the face of a steadily strengthening US dollar and weakening demand growth in top consumer China. Top copper producer Codelco, which last month shocked the copper market by offering to sell 2016 shipments to China at a three year low has spooked markets about the state of next year's demand, said Triland in a note.
"Markets read the lower premium offered as possible weak forecasted demand for next year... It looks like 2016 could be a repeat of 2015, as lack of term contracts could see a scramble for spot cargo and volatile premiums." Triland sees spot premium for Shanghai bonded copper trading at $75-$85.
In other metals, Shanghai zinc, tin and nickel all fell around 2 percent each, reflecting bets of slowing demand growth and persistent weakness in China's steel sector into next year.
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