Shanghai copper eases

Shanghai Futures Exchange copper eased 0.4 percent to 37,160 yuan ($5,588) a tonne on Tuesday, having touched its weakest since July 11 at 36,910 yuan. "Today's Asian session has seen some profit-taking (on short positions) after yesterday's falls, no doubt triggered by the USD," said Kingdom Futures in a note. "Once this has stopped, downward pressure could well resume."
Copper has also come under pressure as evidence mounts of a market in plentiful supply, after years of deficits. Meanwhile, demand growth is still struggling, as illustrated by top metals user China - which accounts for some 45 percent of copper demand - taking further action to bolster the world's second-largest economy. In other metals, a long anticipated deep deficit in the global zinc market appeared in the first half of 2016. Zinc, used in making stainless steel, climbed 0.8 percent on Tuesday as China's steel mills restocked.