Shanghai copper prices fell on Monday tracking losses in London, amid a firmer dollar and a lack of clear demand improvement from the troubled Chinese property market.
The most-traded June copper contract on the Shanghai Futures Exchange (SHFE) fell 0.7 percent to 81,180 yuan ($11,254.84) per metric ton at the midday break, tracking an aggregated 0.8 percent decline on the London Metal Exchange while the Chinese markets were closed for a holiday last week.
SHFE zinc shed 0.2 percent to 23,330 yuan, tin dropped 0.6 percent to 259,820 yuan, while aluminum rose 0.7 percent to 20,745 yuan, lead advanced 1.4 percent to 17,575 yuan and nickel increased 0.4 percent to 144,590 yuan.
The London Metal Exchange is closed for a public holiday.
The dollar index rebounded, after hitting a three-week low in the previous session. A firmer dollar makes greenback-priced metals more expensive for holders of other currencies.
Copper prices have been supported by a potential cut of smelters’ output due to limited mine supply. However, data has not reflected any large cut and smelters with long-term raw material supply contracts are less likely to do so soon.
“The (copper) smelting profit of long-term orders still remains above 1,700 yuan a ton, so the willingness of companies with long-term orders to actively reduce production may be relatively limited,” said Huatai Futures in a report.
