Shanghai copper futures pared early gains on Monday as investors trimmed positions in light of rising stocks and record prices. Shanghai copper rose 260 yuan to 69,760, having earlier touched 70,200 yuan. China's imports of copper fell 2 percent to 344,558 tonnes in December from 351,597 tonnes in the previous month, data showed on Monday. Final data, including a breakdown of refined copper, will be released later this month.
"The number is higher than my expectation, given how poor the price differentials were. It could only be explained as people using copper imports as a way to borrow money," said Zhu Bin, analyst at Nanhua Securities. "Once banks loosen up lending, such trade will diminish. In addition, some traders who are bullish on copper for the long term have been buying."
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