Shanghai copper futures fell more than 2 percent on Friday, tracking a decline in London on demand concerns after weak US economic data, while cautious Chinese investors sold ahead of their year-end holidays.
Traders saw limited direct impact on base metals from the assassination of Pakistan's Benazir Bhutto, but were worried that copper prices might be influenced in the days ahead by volatility in other markets.
Shanghai's March copper contract the most active, fell 2.4 percent, or 1,400 yuan to 56,880 yuan ($7,783) a tonne by the close. The price has fallen 7 percent from the contract's six-week peak of 61,250 yuan reached on Tuesday. The Shanghai Futures Exchange will close from December 29 to January 1 for the year-end holiday. Trading will resume on January 2.
Spot copper prices in Shanghai were down 1,175 yuan on Friday, trading between 58,700 yuan and 59,100 yuan. Spot premiums were hovering around 200 yuan a tonne. Copper inventories monitored by the Shanghai exchange fell 125 tonnes, or half a percent, to 25,597 tonnes in the week ended on Thursday, the seventh weekly drop in a row.
Tracking weaker copper prices, Shanghai March zinc closed down 2.2 percent, or 420 yuan, at 18,950 yuan a tonne, while LME three-month zinc was down $30 at $2,440. Zinc inventories in Shanghai rose 31 percent to 54,404 tonnes the week.