Shanghai copper edged down on Wednesday, after falling by its daily limit on Tuesday on stronger-than-expected Chinese import data. Shanghai August copper fell 0.1 percent, or 60 yuan, to 66,880 yuan ($8,708) a tonne at Wednesday's noon break.
"Yesterday's big fall seriously dampened traders' interest in buying the metal," said analyst CIA Luoyi of China International Futures in Shanghai. "It is believed that ample imports will lead to a further rise in the warehouse stockpile." Copper for delivery in three months on the London Metal Exchange was down $45 at $7,710 a tonne.
LME copper inventories at 141,300 tonnes on Tuesday are at their lowest since November 2006. Analysts said larger-than-expected Chinese refined copper output for April could further weigh on a relatively weak spot market, adding to pressure on Shanghai futures prices.
In Shanghai's cash market, copper was traded between 65,150 yuan and 65,400 yuan, down 50 yuan. China produced 17.1 percent more refined copper in April than a year at 273,700 tonnes, the National Bureau of Statistics said on Wednesday.
"It is really surprising. The rising output, combined with the country's April imports, will cause pain in the physical market," said Pang Ying, analyst at Minmetals Star Futures. China's imports of refined copper, anode and copper alloy in April stood at 205,053 tonnes, of which refined copper imports alone are likely to have hit 180,000 tonnes, traders estimated.