Breaking News

Home Depot Says 56 Million Payment Cards at Risk From Hack
Tweet TWEET

Copper in Shanghai Falls on Signs of Oversupply, Credit Squeeze

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.

To contact Bloomberg News staff for this story: Alfred Cang in Shanghai at acang@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.