The most-traded October copper contract on the Shanghai Futures Exchange fell 1.2 percent to 48,920 yuan($7,948) a tonne on Thursday, also tipping its lowest in seven weeks after growth in China's huge property sector showed signs of cooling, while worries persisted that geopolitical tensions would dampen Europe's recovery.
China's economy showed further signs of softening in July despite a burst of government stimulus measures, suggesting more policy support may be needed to keep growth on track as a property downturn worsens. "I think the copper price correction is overdone," said Helen Lau, analyst at UOB-Kay Hian Securities in Hong Kong, given how Beijing might respond to its still sluggish economy. The slowdown in lending and in construction raises prospects for China to step up monetary support which would in turn fuel commodities demand, she said.