Shanghai Futures Exchange copper fell 1.7 percent to 39,800 yuan ($6,409) a tonne on Monday, trending towards six-year lows in the face of ample supply, stuttering demand growth in top user China and a stronger dollar. "It's all looking soggy." said Jonathan Barratt, chief investment officer at Sydney's Ayers Alliance.
"I really want to see an improvement in economic activity as proof that China's stimulus is having an effect but right now we just haven't gotten that performance." China's stronger-than-expected second quarter economic growth and a pick up in some property prices last week offered optimism for prices and demand for copper from the construction sector later in the year.
However, the price outlook in the near term was more downbeat, given China's consumption tails off over the northern hemisphere summer, while an ongoing credit crunch has cut back capital for purchases. China stocks erased early losses and ended higher on Monday, after the country's securities regulator reaffirmed its support for the market, denying a media report that the government was studying how to end its bailout. Hong Kong Exchanges & Clearing Ltd (HKEx) said on Sunday it had settled two class-action lawsuit complaints against itself and subsidiary the London Metal Exchange (LME) over allegations of anti-competitive and monopolistic behaviour.
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