Copper prices in Shanghai fell about half a percent on Tuesday, and a dearth of compelling data to support bullish or bearish positions will trap prices in ranges. Benchmark third-month Shanghai copper lost 270 yuan to 56,920 yuan at close, at a 507 yuan discount to the benchmark London contract, accounting for China's 17 percent VAT.
"The market is waiting for a clear direction," said a Shanghai-based trader, "the sentiment is bearish, and we'll see LME copper test the strong support level at $7,150." China's aluminium market has returned to a state of oversupply as producers restarted idled facilities and new production exceeded demand growth, analysts said. Shanghai zinc fell to a near 2-week low of 16,560 yuan a tonne, before ending the day's trade at 16,640 yuan, down 1.7 percent from the previous close.