Shanghai Futures Exchange copper slid 2 percent to 34,630 yuan ($5,267) a tonne on Tuesday, a one month low. ShFE copper is holding well above 6-1/2 year lows of 30,010 from November 24. The prices dip with fresh selling unleashed on worries over China's teetering economy and amid a seasonal slowdown in demand ahead of the Lunar New Year. Selling ramped up into early European hours, with nickel hitting its weakest since 2003 and zinc its cheapest since 2009.
This year's share market rout in China paused on Tuesday after the country's top economic planning agency said it expected GDP growth of around 7 percent in 2015 as it etched out a raft of supportive economic measures. "China is expected to see an L-shaped growth recovery path over a long period of time, as China will refrain from strong economic stimulus," Argonaut Securities said in a note. "Ongoing overcapacity reduction and deleveraging may drive the GDP growth lower, but this underpins sustainable economic growth. (We) believe that overcapacity reduction is one of the key positive catalysts to stabilise commodity prices for 2016."
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