HANOI-Copper prices in London fell on Tuesday on short-covering after prices rallied in the previous sessions on signs of improving demand in top consumer China and US rate cut hopes.
Three-month copper on the London Metal Exchange fell 0.4 percent to $9,219.50 per metric ton, while the most-traded September copper contract on the Shanghai Futures Exchange advanced 0.4 percent to 73,900 yuan ($10,338.56) a ton.
LME aluminum declined 0.6 percent to $2,431.50 a ton, nickel fell 0.4 percent to $16,605, zinc eased 0.2 percent to $2,782.50, tin dropped 0.8 percent to $32,315 and lead was flat at $2,039.
SHFE aluminum rose 0.9 percent to 19,660 yuan a ton, nickel increased 0.6 percent to 129,630 yuan, tin advanced 0.3 percent to 263,420 yuan while zinc fell 0.3 percent to 23,210 yuan and lead declined 0.5 percent to 17,565 yuan.
“The recent price increase is from short-covering,” said Hong Kong-based analyst Matt Huang at broker BANDS Financial, referring to bearish copper position holders having to close their positions when prices rise to tame losses.
September open interest for copper has dropped to 67,000 lots from 107,000 lots a week ago, while December contracts only increased by less than 10,000 lots, suggesting there is little contract rollover, according to Huang.
