Shanghai Futures Exchange copper fell 0.9 percent to 34,710 yuan ($5,408) a tonne as Chinese imports jumped in November, offering a salve to prices even though overall trade declined in the world's second-largest economy, underlining the fragile outlook for its metals demand. Trade data also showed that China boosted aluminium exports in November to 450,000 tonnes, equal to the second highest on record, which helped push aluminium prices off the day's peaks.
ShFE nickel fell as much as 3 percent on Tuesday amid a mounting oversupply and still weak demand from stainless steel. China's trade performance remained weak in November, casting doubt on hopes that the world's second-largest economy would level off in the fourth quarter and spelling more pain for its major trading partners. But China's copper imports revived by 9.5 percent to 460,000 tonnes, in part as consumers pounced on prices that last month slumped to six-year lows, and as shipments picked up after a week long holiday in October.
"There is no doubt that weak commodity prices have induced some opportunistic buying. This should be mildly supportive for commodity markets," ANZ said in a note. "However, we still don't expect to see Chinese consumers start to aggressively restock with the outlook remaining weak."