Shanghai Futures Exchange copper finished down 0.4 percent at 53,160 yuan ($8,122) a tonne on Wednesday, having climbed off earlier lows. "Yesterday's correction was realistically overdue by a long way with markets like nickel that have rallied almost 30 percent without any major interruptions," said broker Kingdom Futures in a report.
"However ... nothing has changed in the metals world in the last 24 hours, warehouse stocks are still at very low levels ... the global economy is growing across the board and metal consumption will rise as a consequence." Steel prices were softer in Shanghai, spilling across to input materials nickel and zinc. Shanghai nickel fell 1.6 percent, while ShFE zinc dropped 3.6 percent and lead fell 2.5 percent.
The China mainland market for lead is tightening, which can be seen in a rising front-month ShFE lead contract against the three-month contract, while the arbitrage turned positive for imports around mid-August. China has been shutting lead smelters as part of environmental inspections.