Shanghai Futures Exchange copper fell 3.2 percent to 45,180 yuan ($6,551) a tonne on Thursday. Shanghai zinc and nickel were also hit hard, falling 3 percent and more than 4 percent respectively and tracking weakness in China steel. "The LME delivery triggered the sell-off yesterday and I heard that some Chinese entered on the short side yesterday. I heard there is more to come today," a Shanghai-based trader said.
"But Chinese consumption at the moment is actually quite good." Concerns that heat is evaporating from China's economy have added to downside pressure on metals, exacerbated by China's weaker Caixin PMI numbers, said Kingdom Futures in a report. "Later today there is a mass of US data including key employment numbers, durable goods and factory orders and if these also fall below expectations it would be reasonable to expect another wave of afternoon selling."
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