Shanghai copper lower

Copper prices edged down on Monday as the unfolding disaster in Japan continued to rattle financial markets, but the long-term demand prospects for industrial metals are expected to be lifted by reconstruction efforts after the quake. Shanghai's most active copper futures contract gained nearly 1 percent, but reversed course to edge down 0.2 percent at 69,100 yuan. "In the short term, demand is likely to take a bit of hit," said Yingxi Yu, an analyst at Barclays Capital.
"If you look beyond that, the reconstruction effort will be very metal-intensive." A few metals refineries and smelters, including Mitsubishi's Onahama copper smelter and Pan Pacific Copper's Hitachi refinery, halted operation after the earthquake. "The impact on the metals will be neutral," said a Shanghai-based trader, adding that there was not much room on the downside for metals. Shanghai aluminium dipped to a 3-1/2 month low at 16,600 yuan a tonne, before recovering to 16,620 yuan.