Shanghai metals fell on Wednesday after China said it was considering easing the monetary policy but did not specify when.
A research office at China's top economic planner has called for the central bank to cut interest rates and bank reserve requirements "at the appropriate time", in rare comments on monetary policy by the agency. Shanghai Futures Exchange copper dropped 0.4 percent to 37,790 yuan ($5,701) a tonne. Shanghai aluminium and lead also slid by 1 percent with lighter losses seen in other contracts. "I do think that the market had discounted the possibility of a RRR cut in the shorter term and maybe they are waiting to see whether it is more talk or they will actually follow through," said analyst Daniel Hynes of ANZ in Sydney.
"It doesn't surprise me that the market isn't running away just yet. While we are going through a bit of a seasonal lull in demand, I think the fact that prices are holding up so well suggests there is a bit of optimism out there regarding the base metals."
Comments
Comments are closed.