Shanghai Futures Exchange copper fell 1 percent to 51,420 yuan ($8,125) a tonne on Monday, the steepest decline among Shanghai metals. Prices slipped on simmering unease that tensions between the world's top two economies could dent demand, while markets turned to this week's Federal Reserve meeting in expectation it could push up the dollar.
Further losses could be seen in base metals near-term before spreads start to tighten towards the month- and quarter-end, bolstering prices, Kingdom Futures said in a report. "It might well be that we see prices drop as the more speculative longs exit positions and indeed any further sudden falls in global equity markets could trigger a sharp selloff in metals," it said. In China, metals inventories have built despite pollution controls that curbed factory output. Shanghai aluminium stocks surged by 87,303 tonnes to a record-high of 934,216 tonnes, data on Friday showed.
China's new home price growth slowed in February from the previous month as a raft of government curbs aimed at tempering speculative demand softened prices in the biggest cities. China will set more stringent targets for improving the nation's air quality under a new three-year plan, as Beijing prepares to beef up a nationwide crackdown on polluters in its years-long campaign to clear its notoriously toxic skies.