The most-traded copper contract on the Shanghai Futures Exchange fell 0.77 percent to 46,630 yuan ($6,775) a tonne on Friday as traders unwound speculative positions on doubts that the post US election rally has much further to run, although losses were kept in check by firmer oil prices and signs of global industrial growth.
ShFE aluminium and LME aluminium were each off about 0.3 percent, unmoved by news Alcoa shut a potline at its Australian Portland smelter due to a power shortage. ShFE zinc fell 2 percent. ShFE tin was down 1 percent to 143,900 yuan ($20,903.85)a tonne, while SHFE nickel was slightly weaker at 92,430 yuan ($13,427)a tonne.
Traders said despite the retracement, there was robust appetite to buy on dips, which could turn prices higher later in the day. "This isn't the end, the glass is still half full," a Perth-based trader said. "Oil is still higher and that's a positive for other commodities." The downside for most industrial metals was limited by data this week showing China's official PMI rose to 51.7 in November from 51.2. The index was stronger than expected and matched a level last seen in July 2014.
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