Metals extended losses on Wednesday, with LME copper dipping 1.6 percent against a backdrop of reviving worries about eurozone debt, the potential for China to cool growth and concern about interest rates. Benchmark third-month Shanghai copper rose 0.5 percent to close at 55,990 yuan, while the spread between the front month and the third month flipped between contango and backwardation, ending the day in a 140 yuan contango.
The LME-Shanghai arbitrage also held around flat for most of the before popping out to 560 yuan in favour of importing copper at the end of the trading session in China.