Easing expectations keep losses in check for SHFE copper

By Michael Bellart Source:Global Times Published: 2012-7-10 22:20:04

Key commodity futures fell Tuesday after steadying overnight as China's lackluster imports last month undermined other positive domestic economic news.

The most traded copper contract on the Shanghai Futures Exchange (SHFE) fell 0.18 percent to close at 55,080 yuan ($8,650.99) per ton. The contract opened about even with Monday's closing price before rising steadily over the session, only to give back its gains in the last hour of trading.

SHFE copper trailed its counterpart on the London Metal Exchange (LME) overnight. The three-month LME copper contract rose 0.4 percent after the domestic markets closed Monday. It was trading at $7,529 per ton when the markets closed Tuesday, down about 0.2 percent for the day.

Copper had found support from China's low inflation figures for last month as they give the country's central bank room to continue relaxing monetary policy.

The country's latest trade figures, however, dampened that sentiment, according to the Australian Bank ANZ. Both import and export growth rates slowed in June, especially in imports, which grew by only 6.3 percent, down from 12.7 percent in the previous month.

"Base metal prices have held up well despite the dismal China import figures, as many believe such data will help push central banks toward more stimulus policies soon," a Shanghai-based trader told Reuters Tuesday.



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