Shanghai copper futures weakened for the third straight day on Friday under pressure from an abundance of spot supply at home and overseas. Copper stocks in the Shanghai Futures Exchange's warehouses fell a tiny 458 tonnes to 42,071 tonnes in the week ended on Thursday, the exchange said after the market closed on Friday.
Still, the inventories had more than doubled from the 17,265 tonnes the warehouses held in late April. In London Metal Exchange warehouses, copper stocks went up another 1,050 tonnes on Friday to 81,325 tonnes, after having jumped a combined 9,425 tonnes from Tuesday to Thursday. "High inventories both at home and abroad have sparked worries over a powerful correction in copper futures prices," said a Chinese trader.
Shanghai's most active November contract ended at 34,290 yuan ($4,240) per tonne on Friday, down 330 yuan from Thursday's close. Combined market trading volume rose to 88,820 lots from 57,818 lots on Thursday.