Shanghai copper drops

The most-traded August copper contract on the Shanghai Futures Exchange slipped 0.8 percent to 48,470 yuan ($7,700) a tonne on Thursday as worries resurfaced about China's economy after Beijing urged local governments to speed up spending to support growth. But the comments from China's government to quicken the pace of budgetary spending to guarantee construction of key projects and boost the slowing economy spooked markets and soured appetite for risk and also for commodities, most of which China is the world's top consumer.
"There are risks of more of a slowdown than what was expected - this is why the government talks about mini stimulus," said Helen Lau, a mining analyst at UOB-Kay Hian Securities in Hong Kong. Rising copper prices in the past few months have mainly been due to a seasonal demand pickup, state purchases by China and falling global stocks, she said.