Copper prices fell on Thursday, with London metal paring the previous session's 2 percent gain, as equity markets eased and support from a weaker dollar gave way to worries about demand once more. China's manufacturers are winding down for the traditional summer lull at the same time that the country tries to digest soaring imports in the first four months of the year.
Which have caused the premium for copper in Shanghai versus London metal to collapse. Third-month Shanghai copper was at a 116 yuan discount to the benchmark London Metal Exchange contract, including China's 17 percent VAT, down from a 1,500 yuan premium three weeks ago.