Copper futures traded on the Shanghai Futures Exchange settled slightly lower Wednesday, following small overnight losses in London Metal Exchange three-month copper.
The benchmark February 2007 contract fell CNY120 to settle at CNY62,790 a metric ton, after trading between CNY62,650/ton and CNY62,910/ton.
Trading volume for all Shanghai copper futures fell to 19,880 lots from 30,044 lots Tuesday.
One lot is equivalent to five tons.
"Profit-taking in LME as we're approaching the year-end added pressure to the SHFE, although we have a cash premium of about CNY1,000/ton," said Feng Baojun, an analyst at GF Futures Co.
Feng said otherwise the SHFE should have the momentum to catch up with the strong spot market.
On the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, spot copper was quoted at CNY64,480-CNY64,680/ton, down from CNY64,800-CNY65,000/ton Tuesday.
Analysts said local cash values are likely to hold around CNY65,000/ton into next month, as local demand remains strong.
Three-month LME copper fell $21 to end the late kerb Tuesday at $6,644/ton.
It was quoted higher at $6,685/ton around 0700 GMT, when the Shanghai market is closed.
Shanghai's aluminum futures settled mostly higher a tad, continuing its recent consolidation in shrinking volume.
The most active March 2007 contract settled CNY50 higher at CNY20,310/ton, after trading between CNY20,240/ton and CNY20,370/ton.
China's futures markets are off-limits to foreign investors.
Wednesday's closing prices in yuan a metric ton versus LME late kerb prices from Tuesday in dollars a metric ton:
Copper Change Aluminum Change
Shanghai Feb 62,790 Dn 120 Mar 20,310 Up 50
LME 3Mo $6,644 Dn $21 3Mo $2,803 Up $16
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