Shanghai copper fell 1.2 percent on Thursday, pressured by the threat of cheaper imports, while London futures were fettered by rising stocks. January's copper contract, the most active on the Shanghai Futures Exchange, was down 790 yuan at 64,410 yuan ($8,622) a tonne at the close.
"Shanghai copper is under downward pressure, but it's unlikely that it will fall sharply in the long run. Once it gets close to 60,000, it will attract a lot of buyers," said Lie Rong, an analyst from Great Wall Futures. He added that the yuan was appreciating quickly and the interest rate cut by the US Federal Reserve could speed up that process.
A stronger yuan makes imported copper more attractive and puts pressure on domestic prices. The US Federal Reserve cut US interest rates on Wednesday by a quarter-percentage point to 4.5 percent and sent gold prices to a new three-decade peak within a whisker of $800 an ounce, while oil surged back towards $100 a barrel.