Copper futures in China fell for a second session on Tuesday and touched their lowest level in 15 weeks, reflecting faltering sentiment among investors amid mounting concerns over an economic slowdown. Prices tumbled in most Chinese commodities following a pre-Christmas holiday sell-off in overseas markets, with investors rattled by a likelihood of a prolonged US government shutdown and the US Treasury secretary's convening of a crisis group meeting to calm markets.
Trade is generally lukewarm during the Christmas holiday period...China is unlikely to add more refined copper output before producers reach an agreement on new treatment and refining charges (TC/RCs), said analysts from CITIC Futures in a note in Mandarin. A meeting to discuss the TC/RCs for the first quarter next year is scheduled to be held on Thursday. "With Chinese new year approaching, total demand in the country will gradually weaken, which would rein in copper prices."
FUNDAMENTALS
The most-traded February copper contract on the Shanghai Futures Exchange dropped as much as 1.6 percent to a level last seen on September 12. It settled down 0.4 percent at 48,010 yuan ($6,973.43) a tonne when the market closed at 0700 GMT. LME COPPER: Three-month copper on the London Metal Exchange was down 0.6 percent to $5,955.5 a tonne on Monday, having hit its lowest since mid-September at $5,941. LME is closed on Tuesday for the Christmas holiday.
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CHINA ENVIRONMENT: China will adopt more efficient and targeted measures during its campaign against pollution next year, but will not relax the targets or ease the crackdown on violators, the environment ministry said in a statement on Monday night.
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