Copper futures in Shanghai fell from the highest level in 12 weeks as some investors sold the metal after a liquidity squeeze and on concern the Chinese market is oversupplied.
Copper for delivery in March on the Shanghai Futures Exchange dropped as much as 0.6 percent to 52,070 yuan ($8,576) a metric ton after climbing 0.8 percent to the highest intra-day level for a most-active contract since Sept. 30. The metal traded at 52,130 yuan at 11:30 a.m. local time.
“Oversupply concerns in the Chinese copper industry and the recent credit tightness increased risk sentiment and triggered profit taking,” said Li Ye, an analyst at Shenyin & Wanguo Futures Co. in Shanghai.
Copper production in China, the world’s largest user, climbed to a record in November, the National Bureau of Statistics said on Dec. 12. The seven-day repurchase rate slid today after touching the highest level since June on Dec. 23.
The contract for delivery in March was little changed at $3.376 a pound on the Comex in New York. The London Metal Exchange was closed for a second day for Christmas holidays.
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