China's copper futures contracts ended down sharply on Tuesday as steep losses on the London Metal Exchange overwhelmed a shortfall of the metal on the domestic market, traders said.
Shanghai's most active contract, January, was the day's biggest declines, plunging 690 yuan to 26,580 yuan ($3,212) a tonne, while most other contracts on the exchange ended down between 170 yuan and 650 yuan.
Combined volume fell to a moderate 140,282 lot from 157,310 lots on Monday.
LME three-month copper ended on Monday's kerb down $54 at $2,750 a tonne, though it recouped some losses during on Tuesday's Asian trade to hit $2,770/75.
"LME's overnight dive depressed Shanghai prices, but we expect copper futures to outperform the LME in the near term due to tight domestic spot supply," said a Chinese trader.
Spot copper in Shanghai fell 300-330 yuan to move in a range of 29,270 to 29,430 yuan a tonne on Tuesday, traders said. Traders said Shanghai copper prices had recently outperformed the LME, propelled by shortages in domestic spot copper due to slow imports from May to August.
Imports had increased since September but had yet to resolve shortages, they said.