Shanghai copper falls

Shanghai Futures Exchange copper fell 0.5 percent to 39,010 yuan ($6,130) a tonne on Wednesday defying sour sentiment towards base metals after world factory activity slowed in August and the International Monetary Fund cut its outlook for global growth. China's giant manufacturing industry contracted and euro zone and US growth eased in August, data showed on Tuesday, while the International Monetary Fund cut its forecast for world growth this year. "We saw some light (sell) stops first thing - that's the tone, sell on weakness or into a rally," a Hong Kong based trader said, adding there has been some import-related buying.
A larger drop in LME prices compared to those in China have turned imports profitable, Reuters calculations show. But Standard Chartered sees further pain ahead for copper producers, as it slashed its price outlook. "A combination of extreme macro pessimism, particularly regarding China, and surplus conditions projected for the next two quarters indicate that a sustained recovery is unlikely at least until Q2-2016," it said.